Tesla pins hope on refreshed Model Y to revive stalling sales in China, fend off EV rivals

South China Morning Post

Thu, Mar 13, 2025, 2:30 AM 3 min read

Tesla has received massive orders for its refreshed Model Y SUV in mainland China, a major boost for the US electric vehicle (EV) maker after sales fell sharply last month.

The company's Gigafactory in Shanghai, its largest in the world, is ramping up production of its bestselling model to ensure early deliveries to customers, according to two sales managers in the city.

Tesla's sales on the mainland in February fell to 30,688, the lowest since July 2022. Deliveries slumped 51.5 per cent month on month and 49.2 per cent year on year.

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Tesla began delivering the upgraded version of the Model Y on the mainland in late February, but buyers in Shanghai are still waiting for deliveries due to a production shortage.

Tesla employees at the Shanghai Gigafactory 3 witness the 2 millionth vehicle roll off the production line on September 6, 2023. Photo: Handout alt=Tesla employees at the Shanghai Gigafactory 3 witness the 2 millionth vehicle roll off the production line on September 6, 2023. Photo: Handout>

Customers ordering the entry-level Model Y have to wait for two to four weeks for deliveries, according to Tesla China's website. The wait for the long-range version is six to 10 weeks.

"Tesla is playing catch-up with its Chinese rivals after losing market share to companies like BYD and Xiaomi," said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. "The new version of the Model Y is certain to buoy sales in the near term, but the US carmaker will still face pressure to retain its share in this cutthroat market."

Chinese technology news site 36kr reported on Wednesday that Tesla had amassed 200,000 orders for the new Model Y, which starts at 263,500 yuan (US$36,292). The basic edition has a range of 593km on a single charge. A long-range variant with a driving range of 719km sports a price tag of 303,500 yuan.

The old model was priced between 249,900 yuan and 354,900 yuan.

The new Model Y has a revamped exterior and interior, as well as a longer driving range. The car also features adaptive headlights, which can prevent people in front of the car from getting blinded by glare.

Tesla has been the runaway leader in China's premium EV segment since 2020 when its Gigafactory 3 at the Lingang free-trade zone started operations. That year, Tesla's mainland deliveries of 180,000 plus units accounted for more than 16 per cent of the total EV sales nationwide.