Tesla finally "strikes back"

Author | Chai Xuchen

Editor | Wang Xiaojun

Tesla, which has been besieged by domestic new forces, has finally struck back.

Without a press conference, without any preheating or announcements, on the morning of January 10, Tesla's China official website directly launched the refreshed Model Y. The initial release includes a rear-wheel drive version and a long-range all-wheel drive version, priced at 263,500 yuan and 303,500 yuan respectively.

The new car has undergone varying degrees of upgrades in appearance, cabin, and range.

In terms of appearance, the new Model Y draws inspiration from the rugged design of the Cybertruck, featuring a similar continuous light strip, complemented by a rear diffuse continuous light strip, giving it a more cyberpunk sci-fi feel, which has become the most recognizable feature of the new Model Y.

This time, features such as front seat ventilation, front and rear seat heating, ambient lighting, and an 8-inch display screen for the rear seats have all been included in the refreshed Model Y; the previously criticized rear seats have also been extended by 15mm, and the sunshade and heat insulation capabilities have been upgraded. The once "bare-bones" Model Y has finally reached the same starting line as domestic manufacturers.

The new Model Y not only improves its exterior design and interior but also shows advancements in performance and range. The 0-100 km/h acceleration has improved to a maximum of 4.3 seconds, achieving an increase of over 30 kilometers in range, with a maximum range of 719 kilometers.

It is worth mentioning that launching major updates at the beginning of the year has almost become Tesla's routine. As the absolute king of SUVs in the domestic market, the new Model Y, which has been "squeezed out" like toothpaste, is likely to influence the direction of the SUV market this year.

Last year was a breakout year for domestic pure electric SUVs. During the "golden September and silver October," models such as LeDao L60, ZEEKR 7X, IM Motors R7, IM Motors LS6, Avita 07, and Voyah ZhiYin all aimed at the Model Y and made intensive moves. Voyah CEO Lu Fang referred to this as "the six major factions attacking the Bright Summit."

The logic is simple: since its debut in 2019, the Model Y has seen continuous minor updates but has not undergone a major overhaul. It can be said that the Model Y's six consecutive years of hot sales rely more on Tesla's strong brand effect and the balanced strength of the product itself.

Therefore, whoever can take a piece of meat from the Model Y, which has an annual sales target of 480,000 units (2024), will be able to carve out a niche in the SUV market.

Currently, the challengers have also delivered impressive first-phase results, with IM Motors R7 exceeding 58,000 pre-orders, ZEEKR 7X deliveries surpassing 30,000 units, and LeDao L60 monthly deliveries exceeding 10,000. With the leading player under siege, Tesla is under significant pressure.

Last year, Tesla's global total sales delivery reached 1.7892 million units, a year-on-year decline of 1.1% in a fiercely competitive environment, marking the first decline for Tesla in nearly a decade, indicating that Tesla's once-proud leading advantage in car sales is beginning to erode. Its stock price has also rapidly declined, retreating from last month's high of $470 per share, falling below the $400 mark Although Musk has been hinting since 2022 in various occasions about wanting to strip Tesla of its identity as a car company and instead elevate its image as an AI company, selling cars remains Tesla's core business, especially in the nearly zero-sum game of the Chinese market, until autonomous driving and AI robots are truly popularized.

This giant, with a price-to-earnings ratio of 108 times, needs to present more convincing technology and tangible products to maintain its extremely high valuation. After all, its market value has already far exceeded the total market value of major global car companies.

However, at present, the flagship Model S and X have limited sales contributions, the Cybertruck is hindered by slow production ramp-up, and the affordable Model Q has yet to materialize, while the market share of Model 3 may not see significant changes. Nevertheless, Musk still hopes for a 20-30% increase in sales this year, with the heavy responsibility for growth largely resting on the shoulders of Model Y.

Fortunately, the market appeal of Model Y remains strong. Despite numerous formidable competitors, none have been able to shake its position. Tesla boasts: "Despite comparisons, the only model that can surpass Model Y is the refreshed Model Y."

Even though the new Model Y is priced over 10,000 more than the old version, does not enjoy financial policy benefits, and will not be delivered until at least March, its popularity remains undiminished. According to Wall Street news, after the new car was launched, Tesla's store sales were booming, with customers flocking in both online and offline, and many stores have already received over a hundred orders.

The launch of the new Model Y seems to spark a fierce competition, but this SUV battle has yet to reach its climax.

On the same day, several industry leaders, including Lei Jun and Richard Yu, responded on social media, with companies like ZEEKR, Leapmotor, Avita, and Lynk & Co announcing their readiness to compete, creating quite a lively scene.

Richard Yu directly challenged in his social circle, stating that the 智界 R7 still maintains a leading advantage, suggesting that everyone should compare it with the new Model Y after getting the actual vehicle, and remarked that Tesla is merely compensating for past product issues and shortcomings.

Industry insiders believe that Model Y is still a vehicle developed for the global market. It is worth mentioning that although the new car is equipped with Tesla's latest AI4 driving hardware, which has five times the computing power of the previous generation, it is of little benefit to Chinese users, as its FSD driving function has not yet been opened in China. In contrast, first-tier companies like Huawei and XPeng have already covered intelligent driving across the country.

At the same time, this year's most anticipated Xiaomi YU7 has yet to make its move. Half an hour after the new Model Y was launched, Lei Jun replied with a simple "Okay" under the new Model Y's "despite comparisons" caption, subtly throwing down the gauntlet.

Currently, domestic brands that increasingly understand the needs of Chinese consumers are rapidly winning "hearts" and making inroads into the market. The Model Y, which has been compared but never defeated in the past six years, may soon face a real showdown. The automotive market in China and even globally may also witness a significant transformation