Lei Jun throws down the gauntlet first, and it's the defending year for Tesla Model Y.
The new Model Y has finally arrived. Tesla is quite confident about this facelift and has thrown out the slogan "Renewed Model Y, Feel Free to Compare".
It has caused a huge stir.
Screenshot of Lei Jun's Weibo
Lei Jun quickly posted on Weibo, saying "Okay". Xiaomi's upcoming SUV model will inevitably have a fierce competition with the Model Y.
Yu Chengdong also publicly stated, "Looking at the data, the Zhijie R7 still maintains a leading advantage!". Subsequently, brands such as Xiaopeng, Ledao, and Zeekr have all declared war on Tesla's slogan "Feel Free to Compare".
Why is Tesla so confident?
According to the released information, the Model Y has been updated in terms of design, performance, battery, etc. However, a line of bold black font is marked on the ordering page: Delivery is expected to start in March, subject to approval by regulatory authorities.
So for some details, the answers cannot be found from the currently released materials, such as whether the turn signal uses a button or a lever? Does the gearshift use a screen or a column shifter?
The Model Y sold a total of 480,000 units in the Chinese market in 2024. 36Kr previously learned that Tesla's sales forecast for the new Model Y in 2025 is about 520,000 units.
Judging from the sales forecast, Tesla expects a slight increase, but the main goal is still to hold its position. Can the new Model Y succeed?
Where is the Renewed Model Y New?
Consistent with various leaked images, Tesla's exterior has not changed much. At the same time, the range has been extended, the acceleration has been increased, the ride is more comfortable, and currently, Chinese car owners still cannot experience the 4.0 AI hardware.
Renewed Model Y
But unlike all previous Tesla cars, the new Model Y has adopted through-type front and rear lights for the first time. This design language is consistent with Tesla's unmanned taxi CyberCab.
But in the Chinese market where through-type light groups are everywhere, we can see the design shadows of many independent brands on the new Model Y.
The designer of Xiaopeng Automobile even directly responded: The new Model Y is paying tribute to Xiaopeng's new family design language. Tesla is no longer leading the design of new energy vehicles.
Renewed Model Y
Let's talk about the price.
The standard range version of the new Model Y is priced at 263,500 yuan, with a range of 593 kilometers and a 0-100 km/h acceleration of 5.9 seconds; the four-wheel drive long-range version is 303,500 yuan, with a range of 719 kilometers and a 0-100 km/h acceleration of 4.3 seconds.
For the same price, consumers can choose models such as Li Auto L6, AITO M7, Zhijie R7, Xiaopeng G6, and so on. At the same time, the prices of high-level intelligent driving of these independent brands are generally between 20,000 and 30,000 yuan. While Tesla's FSD is priced at 64,000 yuan and is currently not available in China.
Chinese consumers use their cars for a large number of commuting and long-distance scenarios. In order to improve the car usage experience, their perception of intelligent driving is gradually becoming more sensitive.
Whether it has a lidar or whether it provides high-level functions has become a major decision-making factor for consumers when buying a car. Tesla's high-priced intelligent driving futures are a hurdle in front of consumers.
There are no discounts for the current order of the new Model Y, but the old model in stock can enjoy a 10,000 yuan reduction in the final payment and a 5-year interest-free policy, with a discounted price of 239,900 yuan. It can be said that the current price of the new model still has room for observation.
In addition, the renewal of the Model Y is similar to that of the Model 3, with a wraparound interior ambient light, front and rear dual screens, seat ventilation, a more comfortable ride, and an improved NVH. From the official released video, some new designs can also be seen.
Buttons have appeared on the steering wheel. On the left are the headlights and wipers, and on the right are the voice and an unknown button. In the experiment of the renewed Model 3, Tesla seems to have reached a preliminary conclusion: Users' feedback on the button steering seems not very friendly.
Renewed Model Y
But another highly controversial screen gearshift. In the product video disclosed on the official website, the central control screen of the renewed Model Y does not show the gearshift style, and there is also no column shifter behind the steering wheel. Whether the renewed Model Y will continue this "anti-human" configuration is unknown.
However, is the SUV really suitable for such a pioneering design?
There is a saying circulating in the Tesla car owner circle, "Don't buy Model Y if you're single, and don't buy Model 3 if you have a family". The target audience of the Model Y is family users, and the main needs of family users are safety and stability.
In an emergency, will the screen gearshift increase the risk and put oneself and one's family in uncertainty? Consumers will use their hard-earned money to give their answers.
However, Tesla still has its technological renewal.
The drag coefficient of the renewed Model Y has been reduced, from 0.23Cd to 0.22Cd.
Through various optimizations, the range of the Model Y standard range version has been increased from 554km to 593km, but the battery has only increased from 60kWh to 62.5kWh.
The battery capacity of the long-range version has increased from 76.8kWh to 78.4kWh, and the range has been increased from 688km to 719km.
With only a 2-3 degree increase in the battery, the range has increased by 10%. Such energy consumption control ability lays a solid foundation for Tesla's low price and high profit; for consumers, it is a more economical and efficient user experience.
Tesla stated on its official Weibo that this is called "Spend every penny on the cutting edge, and stubbornly challenge the physical limits". The renewed Model Y does not add many popular configurations, but focuses more on the invisible "connotation".
Will consumers pay for such efforts?
Surrounded by Rivals, the Best-Selling Model Y Needs to Defend Its Position
Since its first launch in China in 2019 until today, the consumer group of the Model Y has changed. Many users of independent brands are former Tesla owners, but only a small number of people choose Tesla after buying an independent brand.
Under the marketing trend of "There are only Tesla and others in electric vehicles", Tesla has become the first choice for many young people to buy their first car and also the entry-level choice for consumers to switch from fuel vehicles to electric vehicles.
Today, when electric vehicle products are flooding the market, those who still choose to buy Tesla are actually a group of conservative consumers. For them, the value of Tesla is more about the reliability and stability behind the brand.
The renewed Model 3 with button steering and screen gearshift received a mediocre initial response when it was launched in September 2023, with an average monthly sales of 8,000 units. However, after the replacement with a five-year interest-free policy was launched in April this year and the five-year interest-free policy was fully opened in July, the average monthly sales of Model 3 reached 16,000 units in the last two quarters of last year.
Under the brand asset, Tesla's sales code is the price, especially after the launch of Xiaomi SU7. Xiaomi SU7 has now replaced Model 3 and become one of the pure electric sedans with the highest popularity in the Chinese market.
Xiaomi has re-occupied the user's mind with stronger performance and a more trendy design. 36Kr previously reported that the average transaction price of Xiaomi SU7 is higher than that of Tesla Model 3. Whether in terms of sales or brand image, Tesla's position has been threatened.
Xiaomi seems to be following the path that Tesla took back then: With a good user reputation and a steadily increasing sales volume, it has gradually gained the market from a pioneering sedan to a family SUV. Moreover, while independent brands are constantly establishing a technological and luxurious image, Xiaomi is cultivating a reliability label.
In terms of both product and brand value, Xiaomi is directly competing with Tesla.
The absolute advantage of Tesla's product power is declining, and consumers' perception of its product power and the product power after the facelift will not change dramatically. The fierce attack of independent brands has forced Model 3 to rely on price cuts to gain sales. Now, the Model Y has also become a price-sensitive product.
Xiaomi's SUV model YU7 will be launched in June-July this year. With its car-making experience, Xiaomi is likely to come up with a stronger product power and price than SU7. Facing a product with a similar brand power but cheaper and more substantial, the Model Y needs to further challenge its price bottom line.
As a pioneer in new energy vehicles, the customer group accumulated by Tesla is the target that all independent brands are eyeing. Brands such as Xiaomi, Xiaopeng, Li Auto, NIO, Zeekr, etc. are constantly launching new cars, trying to seize Tesla's established market.
In the past few years, these new energy independent brands were still in the exploration stage and their strength was not yet fully developed, posing a relatively small threat to Tesla. However, the growth rate of the Chinese new energy market is accelerating, the system of domestic brand enterprises is continuously maturing, and the accumulation of products and technologies is also more sufficient.
Tesla's proud fully autonomous driving function FSD has not yet had a clear landing rhythm in the Chinese market, while independent brands have entered the stage of implementing the "end-to-end" intelligent driving technology route.
Without a leap in product power, Tesla needs a stronger price advantage to maintain its position as the sales champion.
However, Musk still has a potential ace up his sleeve: SpaceX.
In 2024, SpaceX's heavy-lift rocket "Starship" successfully completed its fourth test flight and successfully recovered the Starship booster. Musk's path to Mars is becoming increasingly clear.
The pursuit of future technology has made Musk an idol of thousands of young people. And this admiration has also transformed into Tesla's sales momentum.
This sense of technological aspiration is Tesla's unique charm. Every time SpaceX's rocket is successfully launched, Tesla will have one more sales chip that can achieve great results with little effort.