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The media reports that the Tesla Model Y refresh is a failure, but the sales data paints a more complicated picture. The total number of EVs sold by all manufacturers in the U.S. increased 1.5% from the first half of 2024 to 2025. During that same time, Tesla’s total sales volume dropped by about 24%. However, when we break out Tesla Model Y sales, we see that they only declined by about 11%. This probably means that if there weren’t extenuating circumstances (Elon Musk is Tesla’s CEO) dragging down Tesla sales, Model Y sales would have improved year-on-year. It should be noted that, incredibly enough, the Tesla Model Y by itself still commands about 25% of the entire U.S. EV market share.
Looking across many social media posts, opinions about the new Tesla Model Y are leaning positive. New Model Y owners are split on styling, with many saying the refresh looks better in person while others see echoes of Kia, Hyundai, or Xpeng. Practical concerns dominate, especially winter performance of the recessed front light bar and the height of the new headlights. Many like that the refreshed Model Y retains an indicator stalk, has improved ride quality, and has a new bumper camera.
There is a lot of buzz on social media including this long Reddit post with many responses from Tesla Model Y owners about the new Tesla Model Y “Juniper” refresh.
cpatkyanks24 posted:
“I actually quite like it from the front. Just don’t love the rear light.”
Misterfubar responded with:
“I don’t hate it. If it rides better than my 2022 Model Y Performance, I’d think about getting one but I really doubt I’ll get another Tesla.”
Agoatnamedsteve added:
“Looks like a Lucid to me”
Kornbelly commented about how the Model Y is unique:
“Tesla’s family four doors are like sports cars and family cars all in one! Who else does that?”
The Tesla Model Y’s Role and Early Demand Results for the Refreshed Model
The Tesla Model Y drives most of Tesla’s sales volume. Depending on the quarter, it drives roughly two thirds of Tesla’s global sales. The six-year-old crossover received a refresh in January, and reached broader global availability by May. However, the updated Model Y, codenamed Juniper, failed to feel truly new to shoppers. Labeling a heavy facelift as new did not seem to create the excitement that Tesla had expected.
Early retail signs for the refreshed Tesla Model Y point to softness. Many markets are offering discounts and low interest loans. Immediate delivery is now common, a pattern that reverses the long wait times that once defined prior Model Y cycles. This probably signals a cooled demand rather than a healthy order book. The assumption of light demand is supported by the New York Times reporting that Tesla factories producing the Model Y ran at roughly 70 percent of capacity in Q2.
International Status
European momentum also looks weak. Sweden fell 53.7 percent year over year in May, Portugal fell 68 percent, and several other markets posted similar declines. Norway stood out as an outlier with a 213% jump in May, which reads more like a localized surge than a continental recovery.
China looks especially tough. For the first half of the year, sales were down almost 12% year over year. Showroom discounts, zero percent financing, and street promotions surfaced, which suggests the refresh did not reset the narrative. Local Chinese brands tend to iterate on 18-month cycles. The Chinese market treated a new light bar and minor tweaks as background noise in a market that rewards rapid innovation.
Design Critiques and Product Life Cycle
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Experts stress that car buyers expect clean generational breaks. The refreshed Model Y is perceived as familiar, which reduces excitement. Designers argue that a light facelift, even with Cybertruck inspired light bars, misses a chance to move the design language forward. The message is simple, if you are not moving forward, you are moving back.
The U.S. Auto Industry Including Tesla Is Facing Existential Competition from China
China has the largest and most sophisticated electrics manufacturing companies, by far. Most of these manufacturers were enabled by U.S. hardware companies. The best example is Apple training Foxconn to build the iPhone and thereby enabling them to become the world’s premier electronics manufacture. Chinese manufactures leverage cheap labor and scale that is unmatched globally, making it impossible for domestic U.S. manufacturers to compete on cost. Electronics manufacturing doesn’t translate to making internal combustion vehicles, but it does translate directly to electric vehicles. A prime example is BYD.
BYD started by making phones, tablets, audio, and then grew into the Apple and Android supply chains. Now, BYD is the world’s largest manufacturer of electric vehicles, and they aren’t alone. Many of the Chinese competitors are relatively new. An example is Xiaomi, initially a Chinese consumer-electronics manufacturer. Founded in April 2010, Xiaomi now has a revenue of roughly $50.6 billion. Xiaomi’s first car was the SU7 sedan. Their second model, the YU7 SUV, launched in China mid-2025 with strong preorder demand. It’s positioned directly against midsize crossovers like Model Y.
Competitive Threats from China
There are scores of Chinese EV manufacturers selling to the Chinese market. Many have an eye on selling EVs globally. Let’s look at two examples that produce a direct competitor to the Tesla Model Y. Xiaomi’s YU7 and Xpeng’s G7 both recently arrived to the Chinese market with strong early demand signals.
Xiaomi brings a vast consumer tech ecosystem, fresh design, and polished infotainment at a lower price, with the YU7 listed about 1,500 dollars under Model Y in China. Deliveries mostly begin next year, which buys Tesla time, although the direction of travel remains clear.
The Xpeng G7 is only sold in China for now. It’s priced from about $27,000 dollars, with a Chinese government certified range of about 436 miles. It boasts an 800-volt architecture which enables very fast charging.
Xiaomi’s YU7 is also currently China-only. It starts at about $35,000, and claims up to about 519 miles range. The YU7 leverages HyperOS which is Xiaomi’s unified operating system that runs across its phones, tablets, wearables, TVs, smart-home devices, and in-car systems.
The 2025 Tesla Model Y is still the global default, on sale across the United States, Europe, much of Asia, and now in South America via Chile. It has an EPA range up to about 357 miles a base price around $46,630. The Model Y leverages the broad availability of the Supercharger system.
Bottom Line
Early signs seem to indicate that the Juniper refresh didn’t reset the curve for the Tesla Model Y. U.S. share remains large, yet global growth stalled, Europe sagged, and China sharpened the competitive edge. The hypercompetitive EV market rewards true generational leaps, clear value, and faster iteration. Tesla can still edit the story with a clean new Model Y generation, a genuinely affordable model built at scale, and crisp execution on software that drivers feel every day. The clock is ticking in a segment where momentum compounds quickly.
Please Drop Your Thoughts in the Comments Below
Does the media narrative of a failed refresh match the data you trust?
Do the Juniper styling tweaks look better in person than in photos for you?
Chris Johnston is the author of SAE’s comprehensive book on electric vehicles, “The Arrival of The Electric Car.” His coverage on Torque News focuses on electric vehicles. Chris has decades of product management experience in telematics, mobile computing, and wireless communications. Chris has a B.S. in electrical engineering from Purdue University and an MBA. He lives in Seattle. When not working, Chris enjoys restoring classic wooden boats, open water swimming, cycling and flying (as a private pilot). You can connect with Chris on LinkedIn and follow his work on X at ChrisJohnstonEV.
Image source: Tesla media kit, AI
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Source: torquenews.com
