The Tesla Model Y Juniper is scheduled to go on sale in China in March.
Credit: Tesla
The recently announced Tesla Model Y Juniper update will face pricing challenges in the US, reflecting the rapidly changing EV pricing environment. The latest Model Y, already available in China, is expected to arrive in the U.S. in the coming weeks. The Model Y is the best-selling EV in the U.S., dwarfing its competitors.
Trump administration complicates Model Y Juniper pricing in the US
President Trump said on Monday that he would repeal the “EV mandate.” “With my actions today, we will end the Green New Deal, cancel the electric vehicle mandate, save the auto industry, and uphold our sacred oath to our great American autoworkers,” President Trump said in the Capitol Rotunda. ” he said. But it is not yet clear how that will materialize in the coming days and weeks.
The so-called EV mandate requires that two-thirds of new car sales in the United States be zero-emission vehicles by 2032. Almost all zero-emission vehicles sold in the United States today are electric vehicles. President Trump claims that this is tantamount to “mandating EVs.” The term “EV mandate” is used loosely by the president. Its origins stem from guidelines set by the Biden administration.
President Donald Trump’s transition team appears intent on eliminating the $7,500 consumer tax credit for electric vehicle purchases. The credit is the centerpiece of the Biden administration’s Inflation Control Act (IRA), which aims to encourage the adoption of electric vehicles. IRA incentives, including a $7,500 EV tax credit, will boost EV sales and help automakers meet the requirements of Biden guidelines. However, it is unclear when the Trump administration will take concrete steps to eliminate the $7,500 credit. Specifically, eliminating the trust would require Congressional action.
The Tesla Model Y has been refreshed.
Credit: Tesla
Tax credits lower Tesla prices
So far, IRA incentives have been a big factor in keeping the starting price of a Model Y, for example, under $40,000. Currently, the starting price for the Y in the U.S. is approximately $37,500 with credits and approximately $44,490 without credits. California has said it will reinstate its state incentive program once the tax credits are eliminated, but for now that’s just a promise. And it’s not clear what other states will do.
Tesla CEO Elon Musk said in July that the federal government’s repeal of the EV tax credit would “only be good for Tesla” and would be devastating for competitors, but that bravado is not clear. There is no way to reflect this in actual future prices.
Model Y Juniper price in China
However, the end of the EV mandate is not the only thing that US Tesla buyers should pay attention to. The initial price of the Model Y Juniper in China (scheduled to launch in March) is higher than previous versions of the Model Y. Will this lead to higher prices in the US?
Juniper RWD in China: 263,500 yuan (approximately $36,000) for the entry-level rear-wheel drive Model Y. This is an increase of approximately 5.4% over the previous Y in China. China Juniper AWD: 303,500 yuan (approximately $42,000) for the long-range AWD version. In China, the increase will be approximately 4.3%. US*: Entry-level RWD Model YUS: $44,990 ($37,490 with $7,500 federal tax benefit) US: $47,990 ($40,490 with $7,500 federal tax benefit) for Long Range AWD Model Y variant.
*Current non-Juniper version pricing in the US
Will Model Y take a hit in sales or will it be impossible to break through?
According to Kelly Blue, the Model Y will be the best-selling EV in the U.S. in 2024, with sales exceeding 370,000 units, surpassing sales of its next closest non-Tesla competitor, the Ford Mustang Mach-E. It is said that it exceeded the sales by more than 320,000 units. Book. (The Model 3 was in second place with about 190,000 units sold.) But will this refresh, which isn’t a major redesign, be enough to maintain its popularity? “The Tesla Model Y is unlikely to be overtaken by other EVs in the U.S. in 2025,” said Stephanie Brinley, an analyst at S&P Global Mobility. This is because they have the production capacity.” But even with the revamp, the design is still outdated, she added.
What should prospective buyers do?
The obvious answer is to buy Y while you still get the $7,500 discount. This is essentially the same as a federal tax credit for many buyers. Wait and roll the dice. If you wait, you’ll get an improved Model Y, but you might have to pay more, possibly even more. Current (non-Juniper) versions of the Y are available both on the US order and (sometimes cheaper) inventory pages. However, please note that both the RWD and Performance versions often have limited availability in the US, depending on the day. Inventory page. However, the popular long range AWD is in good stock.
