Tesla (TSLA, Financial) has introduced an updated version of its popular Model Y electric vehicle in China, featuring a front design reminiscent of the Cybertruck with elongated light strips. While the refreshed design is expected to boost efficiency and appeal, it may not be enough to significantly increase sales on its own. Historically, Tesla's strategy of launching redesigned models has had mixed results. The Model 3 update in early 2024 did not prevent a sales decline, with U.S. sales dropping 21% to about 132,000 units last year.
Overall, Tesla's sales are projected to decrease by approximately 5% in 2024, including a 4% decline in Model Y sales. Nonetheless, the Cybertruck has contributed positively, with around 28,000 units sold in the first nine months in the U.S. Looking ahead to 2025, Tesla aims for a 20% to 30% increase in electric vehicle sales, targeting deliveries of around 2.3 million vehicles, up from 1.8 million in 2024. While the updated Model Y supports this goal, it alone will not suffice to meet growth expectations.
Tesla plans to launch an affordable model priced at $30,000 or less by early 2025 to access a broader market. Additionally, investors are increasingly interested in Tesla's AI prospects, including a planned AI-powered robotaxi service by the end of 2025. Since the announcement of this service on October 10, Tesla's stock has risen about 65%, boosting its market cap by $550 billion. Despite a weak market trend, Tesla's stock remained stable, closing at $394.74, down only 0.05% on a day when major indices experienced notable declines.
