Tesla’s (TSLA) newly launched Model Y, also called “Juniper,” has witnessed a strong reception in China, with over 70,000 orders received in the first five days following its launch. This reflects the company’s continued success in the Chinese market.
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The updated Model Y features a revamped exterior inspired by the Cybertruck and boasts improved battery and powertrain technology. The vehicle is priced competitively at RMB 263,500 for the rear-wheel-drive version and RMB 303,500 for the long-range all-wheel-drive variant. Deliveries for these vehicles are expected to commence in March.
To accommodate the high demand, Tesla plans to temporarily suspend production of some Model Y lines during the ongoing Chinese New Year holiday period. This planned shutdown will allow for necessary adjustments to enable higher production of the new Model Y.
Model Y’s Strong Demand to Boost TSLA’s Bottom Line
The strong demand for the updated Model Y could drive higher sales and support Tesla’s revenue growth. Additionally, increased production volumes could lower manufacturing costs per unit, enhancing TSLA’s overall profitability.
Importantly, this strong performance in China comes after Tesla reported a slight decline in global deliveries in 2024. The company delivered 1.79 million vehicles, down from the 1.81 million vehicles in 2023.
It is reasonable to assume that the success of the refreshed Model Y in China might have been factored into Tesla’s delivery target for 2025. The target will be revealed alongside TSLA’s earnings report, scheduled for release on January 29.
Is TSLA Stock a Buy?
Turning to Wall Street, TSLA has a Hold consensus rating based on 13 Buys, nine Holds, and eight Sells assigned in the last three months. At $338.91, the average Tesla price target implies a 14.66% downside potential. Shares of the company have gained 71.11% over the past six months.
