Launched primarily in China, the Tesla Model Y is a hit

Paradoxical situation for Tesla, which is experiencing declining sales in China but can still dream of better days ahead thanks to the sales forecasts for the Model Y.

The restyled Tesla Model Y is meeting notable success in China, with 200,000 pre-orders. This sign of interest following the launch of the restyled electric SUV is more than reassuring for the American brand. Unlike other markets, China acts as a barometer of Tesla’s overall health because the manufacturer is competing on equal footing with local automakers such as BYD, Xpeng, or Huawei. Elsewhere in the world, subsidies, bonuses, or customs fees distort the competition, sometimes favoring one side, sometimes the other.

At its launch, the Model Y recorded 50,000 orders on the first day. At the same time, Tesla sold 30,688 vehicles manufactured in Shanghai in February, a 49% decrease compared to the previous year. Although this comparison is distorted by the usual slowdown due to the Chinese New Year, combining January and February, Tesla totals 93,926 sales in China, a decline of 28.7% compared to the 131,812 units in 2024.

Just a bad patch?

Furthermore, Tesla has introduced a software update in China, offering advanced driver assistance features similar to “Full Self-Driving” (FSD). However, sold at 8,800 USD (about 8,200 euros), this system struggles to convince, and Tesla plans to soon offer a more affordable subscription option. Add to this the fact that BYD has announced free access to its proprietary autonomous system across its entire technologically compatible lineup, and you have a particularly tense situation.

To try to bounce back, Tesla is preparing to launch the Cybertruck in China in 2025. Although marginal, the pickup market could appeal to a younger clientele thanks to the vehicle’s bold design.

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