Like it or not, the new Tesla Model Y is a big hit in China

It’s interesting to see that even after Tesla successfully changed over Gigafactory Shanghai to the new Model Y, reports still emerged earlier this month suggesting that the demand for the revamped, all-electric crossover may already be over.

Videos from China, as well as the trend in Tesla’s new vehicle registrations, suggest that the demand for the new Model Y in the country is alive and well. 

Why Did Registrations Drop In April?

One of the main arguments supporting the idea that the new Model Y was already running out of steam in China is based on the vehicle’s sudden drop in registrations in April. This, as well as the fact that Tesla China still estimates just 2-5 weeks of waiting time for new Model Y orders, was interpreted as a demand issue by Tesla skeptics.

What is quite surprising is that skeptics still seem to be intentionally ignoring the idea that Giga Shanghai allocates a lot of its vehicle output to foreign territories early on in the quarter. Thus, when Q1 ended and Q2 began, domestic vehicle registrations for the new Model Y dropped. One should not forget, after all, that Giga Shanghai supplies vehicles to numerous territories outside China.

Model Y Registrations and Delivery Centers

The new Model Y’s registrations are picking up once more in China, with numbers rising 77.5% in the week ending April 27. This suggests that Tesla China may be allocating more of Gigafactory Shanghai’s output to the domestic market once more. This also suggests that the new Model Y is seeing quite a bit of interest among Chinese consumers. The new Model Y, at least based on the trend of Tesla China’s registrations, definitely does not seem to be losing steam anytime soon.

A video that highlights this argument was shared recently on social media by Tesla China watcher @GeekLaii, who paid a visit to the company’s delivery center at Crab Island in Beijing. As could be seen in the video, the delivery center is packed with new Model Ys waiting for delivery. Consumers seem to be opting for the vehicle’s mid-tier variant as well, as the majority of the cars at the delivery center were comprised of new Model Y Long Range All Wheel Drive (AWD) variants.

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