Tesla Inc. has recently launched the refreshed Model Y in the U.S., marking a significant difference in its launch approach compared to the refreshed Model 3, which was launched roughly a year ago. This article aims to provide a comparative analysis of the launch of the two models.
Launch Comparison
The refreshed Model Y was launched on Tesla’s website as a new variant, in addition to the existing older variants of the vehicle, just weeks after its launch in China. This approach differs significantly from the launch of the Model 3, which was launched in China in August 2023 and in the U.S. months later in January. The new Model 3 replaced the old Model 3 variants and was not listed alongside the older variants.
Impact on Deliveries
The decision to replace the old Model 3 variants with the new one led to a decline in delivery volumes in the first quarter of 2024. Tesla itself attributed the decline to the production ramp of the updated Model 3 at its Fremont factory. In contrast, the refreshed Model Y is being sold alongside the older variants, with the long-range all-wheel drive variant priced 25% higher than its predecessor.
Expert Insights
According to Tesla researcher Troy Teslike, “I like Tesla’s new approach of selling a fully loaded version of the Model Y Juniper design refresh as the ‘Launch Series’ at a higher price, alongside the old Model Y version. This creates a smoother transition. It suggests that production of the new version is low for now and they want to continue selling the old version.” Teslike also noted that the immediate switch to the new Model 3 Highland upset some buyers who had just purchased a Model 3 days before.
Why it Matters
Tesla reported global deliveries of 1.79 million vehicles in 2024, down from 1.81 million in 2023, marking the first decline in over a decade. CEO Elon Musk expects vehicle sales to grow by 20%-30% in 2025. The differences in the launch of the refreshed vehicle are possibly aimed at retaining the delivery growth expectation. Tesla expects to start deliveries of the new Model Y in March and has stated that its plans for new vehicles, including more affordable ones, remain “on track” for the start of production in the first half of 2025.
Conclusion
In conclusion, the launch of the refreshed Model Y marks a significant difference in Tesla’s approach compared to the launch of the Model 3. By selling the new variant alongside the older variants, Tesla aims to create a smoother transition and avoid disrupting delivery volumes. As the company looks to achieve its delivery growth expectations in 2025, the success of the refreshed Model Y will be crucial.