Tesla Struggles to Rebuild Momentum for Refreshed Model Y in China

Production ramps up at Tesla's Shanghai Gigafactory, but questions remain about the true scale of demand for the updated SUV.

Tesla's February sales in China dropped significantly, with a 51.5% month-on-month decline and a 49.2% year-on-year decrease, marking the lowest monthly sales since July 2022.
The refreshed Model Y was launched in late February, but production constraints have led to delivery delays, with wait times ranging from two to ten weeks depending on the variant.
Reports of a massive order backlog for the new Model Y in China have been contested, with analysts estimating the actual backlog to be far smaller than rumored figures of 200,000 orders.
Weekly registrations for the Model Y in early March have shown steady improvement, rising from 6,700 to 8,700 units, indicating some recovery after an initial production slowdown.
Tesla's Shanghai Gigafactory is focusing on domestic deliveries of the refreshed Model Y, with additional variants and a seven-seater version expected later this year.