Rapid Demand for Tesla's Model Y Diesel in China: Journalistic Account

Tesla's Model Y L Gains Traction in China's Market

In a significant development for Tesla, the automotive giant sold 83,192 vehicles in China during August 2024, marking a 22.5% increase compared to July. However, this figure was still 4% lower than the same month in the previous year.

The driving force behind this growth is the Model Y L, a larger, family-friendly variant of the popular Model Y. This new addition to Tesla's lineup, launched on August 19, has generated 120,000 orders since its release.

The Model Y L offers a flexible rear-row configuration that seats six passengers, making it an attractive option for families seeking both range and roominess. The added value of this spacious SUV is a key selling point, with Chinese customers showing strong interest due to its larger size.

Industry analysts view the Model Y L as a potential turning point for Tesla in its largest international market. Deutsche Bank has noted that Tesla's order flow in August nearly doubled month-over-month, largely due to the strong performance of the new long-wheelbase SUV.

The Model Y L is priced above the standard five-seat versions of the Model Y, with a price tag of ¥339,000 (C$65,600/US$46,900). Despite the higher price, the average number of new orders per day for the Model Y L is close to 10,000.

Deliveries of the Model Y L began on September 2, and customers are currently looking at October delivery windows. Tesla expects the first large wave of customers to receive their Model Y L vehicles in October.

While the Model Y L has been a success story, Tesla's monthly sales in China had shown year-on-year declines for most of the past 11 months. However, the introduction of the Model Y L seems to be revitalising Tesla's sales in the country, offering hope for the company's future in China.

The five-seat versions of the Model Y still have short delivery estimates of 1-3 weeks, indicating that Tesla is maintaining its production pace despite the increased demand for the Model Y L.

In conclusion, the Model Y L has proven to be a game-changer for Tesla in the Chinese market, with its larger size, family-friendly features, and strong demand driving a resurgence in Tesla's sales in the country.