Why are sales figures for the Tesla Model Y falling?
Tesla redesigned the once best-selling car in the world. Yet sales figures for the best-selling Model Y are falling. Why is that?
(Image: Tesla)
- Christoph M. Schwarzer
Demand for the Tesla Model  Y continued to decline in the second quarter of 2025. According to Dataforce, the number of new registrations in Germany fell from 3,442 in January to March to 2,865 in April to June, despite the delivery of the “Juniper” facelift since the beginning of the second quarter. This corresponds to a decline of 17 percent. Compared to the second quarter of the previous year (5,617 units), the decline amounts to 49 percent. Comparing the first half of 2025 and 2024 as a whole, 6,003 Model Ys were registered for the first time, down from 16,662. That is 64 percent less. What is going on here?
The Tesla Model Y was the world's best-selling car in 2023—not just electric cars, but across all drive types. In 2024, depending on the source, it was either back at the top or just behind the Toyota RAV4. Either way, a huge number of Model Ys were put on the road. Looking at it objectively, there are several reasons for the decline in sales on the German market. More competition.
As a compact SUV, the Tesla Model Y serves a particularly important market segment. Anyone who wants to sell electric cars has to make their presence felt. Nevertheless, when deliveries began at the end of 2021, there were only a few competitors. That has changed radically. Here are a few examples, without claiming to be exhaustive: From the Volkswagen Group, the VW ID.4 and ID.5, the Audi Q4 e-tron and the Skoda Enyaq. Hyundai offers the Ioniq 5 and Kia the EV6 (Test) an. Renault has added the Scenic E-Tech (test) to its portfolio and Xpeng has added the G6.
Of course, electric cars such as the $(LP:%5B%22ver%22%2C2%2C%22type%22%2C%22B%22%2C%22id%22%2C4827162%2C%22txt%22%2C%22VW%20ID.7%20Tourer%22%2C%22target%22%2C%22_blank%22%5D)” are also attracting potential customers away from the Tesla Model  Y. There is no formal competition here in the sense of an SUV comparison. However, Tesla has little to offer in the company car market, partly due to erratic leasing rates and unclear residual value calculations.
2. Fewer unique selling points
Many competitors have been inspired by Tesla. The fact that many electric cars now feature preconditioning, i.e., targeted heating or cooling of the battery system for charging stops, is largely attributable to Tesla. What works automatically via the route planner in Tesla cars now has to be done manually in other electric cars. The developers of the Model  Y should really follow suit. –, but they are not doing it yet.
(Image:Â Christoph M. Schwarzer)
This example is representative: Tesla is being overtaken. The only thing that is truly unique to date is the Supercharger network with Plug & Charge. This is the automatic identification and billing of the charging current via a digitally stored credit card in the brand's own fast-charging parks. Only Tesla makes it this simple – again currently –.
Faux leather seats and a panoramic roof, on the other hand, no longer impress anyone. Unfortunately, the so-called autopilot is not even close to where it should be in terms of functionality. Compared to other Level 2 assistance systems, the autopilot cannot keep up. The shortcomings range from poor traffic sign recognition to phantom braking. Many prospective buyers no longer have enough confidence to wait for FSD (Full Self Driving), which is supposed to make everything better.
(Image:Â Christoph M. Schwarzer)
3. No more novelty effect
Regardless of the vehicle type, it can be said that the first two years of sales in a life cycle are usually the most successful. This applies to almost every passenger car worldwide. The reason is the novelty effect: people want the product that has just been introduced. This effect is usually revived by an upgrade in the middle of the model cycle. However, this has hardly worked for the Tesla Model Y Juniper, which has been available since April; the decline has slowed, but that's all.
The Model  Y Juniper differs externally with a continuous rear light strip and a different front end with narrow headlights. Noise insulation has been improved, and while the Model  3 Highland no longer has any steering column levers, the Model  Y Juniper at least retains the turn signal lever.
It is logical that Tesla did not offer any obvious discounts after the facelift. That changed in July: The Model  Y Juniper can currently be financed at 0.99 percent. The redesign probably does not offer enough innovation overall to regain market share in the electric car market, which is characterized by higher charging capacities, better automation systems, and more reliable service.
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4. Elon Musk the politician
How big is Elon Musk's negative influence on sales figures? The simple answer would be: high, because tech nerds and tree huggers are mostly not Trumpists. Elon Musk claims that his massive support in the presidential election campaign was the decisive factor in Donald Trump's victory. This, along with his continued support for libertarian political goals, has earned him the animosity of parts of the German public.
(Image:Â Tesla)
But is that the whole truth? Perhaps it is right to turn the idea on its head: What if the Model  Y had the excellent US-style FSD autopilot and Tesla could offer charging performance similar to Xpeng? What if there were an affordable electric car from Tesla below the Model 3 and Model  Y? Presumably, some people wouldn't care so much about what Musk is up to. After all, when it comes to other manufacturers, few people ask about the behavior of the corporate leadership.
(mho)