Tesla is facing challenges worldwide, but the company plans to strengthen its market position with new versions of the Model Y to consolidate its market position. While the competition, particularly from China, is building up increasing pressure, the Tesla is probably focusing on evolution rather than revolution. Two new versions of the popular Model Y, which are to be launched on the market from 2025, are not only intended to increase sales, but also to reposition the brand.
Tesla's challenges and the importance of new models
Tesla, Once the undisputed market leader in the electric vehicle sector, Tesla is now facing strong competition. The company's global market share is declining, particularly in the US and Europe, where traditional car manufacturers and Chinese competitors are increasingly gaining ground. In addition, many of the current Tesla-models are getting on in years and there is a lack of real innovation in the form of new models.
The latest analyses show that Tesla in the USA has fallen from a market share of 74.8 % in 2022 to 49.7 % in the second quarter of 2024. This is also reflected in the global figures, where Tesla was overtaken by the Chinese manufacturer BYD. In Europe, Tesla's market share is currently only around 3%, and sales figures in Germany are also in sharp decline compared to the previous year.
The solution: evolution instead of revolution with the Model Y
In order to meet these challenges, the Tesla on a further development of the already successful Model Y. Instead of launching completely new models on the market, the company is planning to launch two new versions of the Model Y to launch two new versions of the This strategy will allow Tesla, to utilize its well-established supply chain and keep production costs low.
The first new version, codenamed "Juniper", is planned for the first quarter of 2025 and will be launched as a 5-seater. The second version, a 7-seater, is due to follow at the end of 2025. Both models will be produced in Tesla's cost-efficient factory in Shanghai and will feature a slightly revised design, improved interiors and optimized technology for autonomous driving.
Market opportunities and outlook
The Chinese market in particular is of great interest to Tesla as this is where the competition is strongest. The 7-seater version of the Model Y is set to play an important role there. With an ambitious sales target of 20,000 units per month, the Tesla is relying on the high demand for larger family vehicles in China.
Although the introduction of the new models is progressing more slowly than planned due to internal challenges and delays, the Tesla is confident that these updates will boost demand. With a strategic focus on the further development of existing models and the utilization of cost advantages in production, the Tesla to secure its market position in the long term and regain lost ground.
