Why the new Tesla Model Y arrives earlier in China than in Europe and US

Stability, steady growth of electrics and hybrids and no political interference: this is what makes China the number one market for Tesla

Photo by: Tesla

By: Filippo Einaudi

Jan 11, 2025 at 4:31am ET

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The new Tesla Model Y has finally been unveiled, although it's a preview reserved for the Chinese market, the first country to have it and where production started at the end of October 2024 at the Shanghai Gigafactory, which is now in full swing.

The revamped model's launch date and timing are still unknown in the other main markets, Europe and the USA. According to conflicting sources, it could be launched between May and the end of the year, but without confirmation from the manufacturer. Why has China been given priority over the domestic market?

Uniform growth and better prospects

Part of the answer lies in analysing the markets themselves. China is a very big market for Tesla, which sold more than 44,000 Model Ys in November alone and came second behind local giant BYD in the ranking of "new energy" vehicles, including electric and plug-in hybrids. But that's not all.

Tesla Model Y (2025)

Photo by: Tesla

The Chinese market is also experiencing rapid and steady growth in sales of electrified vehicles, which exceeded 50 per cent in the final months of 2024 (closing the year at 40.7 per cent) and is expected to complete the overtaking in 2025.

Hiccups in Europe

On the other continental markets, the situation is less favourable. While we await the final figures, Europe is building on last autumn's sales recovery, when numbers began to rise again after a period of sharply declining demand, only to fall again in November. This up-and-down trend is partly due to the still excessive reliance on incentives, which makes the market unstable, despite the fact that Tesla continues to dominate the electric car sales charts.

Tesla Model Y charging at a supercharging station

And in the US?

Despite the more than amicable relations between Elon Musk and newly elected President Donald Trump, who will take office in a few days, the incoming government in Washington DC has every intention of pushing hybrid rather than pure electric, for various reasons including the desire to make the transition more gradual and not to scuttle the oil market, which is crucial for the indebted US economy.

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It should be remembered, however, that the Biden administration, as one of its last acts before leaving the scene, confirmed funding to encourage the development of electric vehicles at more affordable price points, a discourse that is certainly of interest to Tesla, which is developing the self-driving Cybercab, which in recent months has taken the place of the Model 2 as an affordable proposition.

However, in light of the facts, here too it has suddenly become less urgent to push for the renewal of the Model Y, which is still the king of the market, closely followed by its sister Model 3, but with a contraction in sales that in October 2024 closed at -13% compared to the previous year.