Tesla’s latest Model Y has been making waves in China, with an impressive 200,000 orders received since pre-orders opened on January 10, 2025. This electric SUV, which claimed the title of best-selling model in 2024 with 481,000 units sold, has been updated with new specifications and pricing that are proving to be competitive in the face of increasing competition from domestic EV manufacturers.
The new Model Y is available in two versions: a rear-wheel drive model with a range of 593 km starting at ¥263,500 ($36,600 USD), and a long-range version with a range of 719 km priced at ¥303,500 ($42,200 USD). Unlike previous updates from Tesla that resulted in significant price hikes, the latest refresh only saw a modest increase of ¥13,600 ($1,900 USD) for the base model.
Despite the success of the new Model Y, Tesla is facing stiff competition from Chinese EV brands. The Xiaomi SU7 sedan has outsold Tesla’s Model 3 for two consecutive months, and upcoming models like the Xiaomi YU7 SUV, XPeng G7, and Li Auto i7 are poised to challenge Tesla’s dominance in the market in 2025.
Deliveries of the new Model Y began on February 26, 2025, with showroom test drives now available across China. While in-store visits may be lower than previous launches, Tesla sales representatives are reporting strong online orders, with some Beijing stores selling up to 100 units per day.
To drive sales, Tesla introduced limited-time incentives for early buyers, including two years of extended warranty, discounted home charging stations, and reduced Supercharging rates for six years. These promotions have been successful in converting early orders into finalized purchases, with over 6,000 deliveries nationwide in the first week alone.
In addition to the Model Y refresh, Tesla also launched its Full Self-Driving features in China, introducing capabilities like traffic light recognition and U-turn assistance. However, Tesla is taking a cautious approach to promoting FSD to customers, as the current system relies on foreign-trained AI models that may not be optimized for Chinese roads. The company plans to introduce a monthly subscription model for FSD as a more affordable option for users.
Looking ahead, Tesla’s focus in China for 2025 will be on introducing the highly anticipated Cybertruck. This futuristic electric pickup has garnered significant global demand, with CEO Elon Musk previously stating that orders have exceeded one million. However, production has been slow, with estimates suggesting only 35,000 to 50,000 Cybertrucks will be delivered in 2024, falling short of the anticipated millions. Tesla is working towards ramping up production to meet the high demand for this innovative vehicle.