News
Tesla’s launch of Model Y RWD is the nail in the coffin at the worst time for legacy auto
Tesla’s launch of the Model Y Rear-Wheel-Drive (RWD) comes at perhaps the worst time for legacy automotive companies. It is affordable, comparable to similar models from competitors, and is perhaps the nail in the coffin, especially for the U.S. market, as it is an affordable car that features some of the best add-ons that EV buyers could need.
Last night, Tesla launched the Model Y RWD on its website, and with federal and local incentives, it could cost buyers under $31,000 as it qualifies for the full EV tax credit from the government. Packing the LFP, or lithium iron phosphate battery pack, Tesla has brought its most popular car to an affordable level with reasonable range ratings and more than acceptable performance metrics.
While it was a timely offering in terms of Tesla’s trek for 1.8 million deliveries this year after a lackluster Q3 due to factory upgrades that required production pauses, this vehicle offers the automaker two things:
- A new mode of demand for the Model Y, especially in the U.S. market, where it has already been extremely popular
- Another edge over the already-frustrated competition, which is falling further behind due to a number of factors, and has already thrown in the towel to Tesla and will use its Superchargers next year because developing infrastructure is difficult
Of course, the Model Y RWD is not the best crossover out there. We would likely reserve this for the Long Range version of the Model Y, which offers more travel distance per charge and better performance metrics.
That’s not to say that the Model Y RWD is something worth overlooking because, for many, it is the answer to the question they’ve had: how will I put the most popular EV in the U.S. in my driveway for roughly $35,000?
This was Tesla’s answer.
Obviously, there is no shortage of people who are at least thinking about buying an EV. Recent figures have shown that Tesla commands the U.S. EV market by a considerable margin, and although it seems there is still plenty of demand for its vehicles in the North American market, Tesla still has to find ways to cater to customers who need certain vehicles at certain price points.
The Long Range Model Y is an ideal car for most people and families. Crossovers are an extremely sought-after body style in this market, but they come at a price. Give someone who needs a crossover EV at a price they cannot pass up and pack on the world’s most expansive charging network on top of it, and it is simply not a matter of whether people will buy it. It’s a matter of when, and how many will be bought.
It is no secret that people may be somewhat worried that Tesla may not reach its 1.8 million unit delivery goal for the year. Even with the Model 3+, or Highland, whatever you want to call it, starting deliveries this month in Europe, Asia, and the Middle East and the Cybertruck likely beginning deliveries soon, there still needs to be some movement in the U.S. market.
Cybertruck deliveries are likely going to be somewhat small for the last quarter of the year, and Highland will contribute plenty of units to the Q4 figures, but the U.S. is still where Tesla dominates the most, but neither of these vehicles are available here yet.
Enter the Model Y RWD as the nail in the coffin for companies that are either striking due to UAW demands for better wages and benefits, or are struggling with EV software and quality, or just an overall lack of awareness in terms of the auto market.
Yes, there are some people out there that have no interest in an EV. However, there are plenty that are. Ford, GM, and Stellantis are not building any in the U.S. currently because of the UAW strike, Volkswagen may have some things to offer, but it hasn’t chosen to adopt the NACS charging connector to gain access to the Supercharger network. Hyundai is still early in its EV venture, and the IONIQ is certainly an attractive option, but the Model Y RWD will trump it because of its price and Tesla’s overall advantages, including charging and overall EV prowess.
We have talked plenty about nails in the coffin for EV makers before, but with a new demand trigger with the Model Y RWD for Tesla and Detroit pausing EV production while the terms of a new UAW contract get worked out, this is spelling nothing but trouble for Tesla’s competitors.
The Model Y RWD has opened a new can of worms for competitors to try and combat. Right now, at least in the U.S., it’s Tesla’s world, and competitors are just living in it.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
News
Tesla new vehicle registrations in China surge to 12-week high
Quarter to date, Tesla’s insurance registrations are up 33.2% sequentially.
Tesla saw a notable jump in weekly new vehicle registrations in China, with 17,300 units recorded from September 15 to 21.
The figure marked a 12.7% increase from the previous week’s 15,350 units and represented the highest weekly total in the past 12 weeks.
Model Y still leads the momentum
The Model Y continued to be Tesla’s best-selling vehicle in China, with 10,340 registrations during the week. Tesla’s recently introduced Model Y L, an extended wheelbase, six-seat variant that launched on August 19, contributed 850 units as deliveries began earlier this month. The Model 3 sedan added 6,060 registrations.
Tesla China noted that customers ordering the Model Y L today can expect deliveries to begin in November, hinting at the strong demand for the newly released vehicle, as noted in a CNEV Post report.
Tesla China’s quarterly performance
Tesla’s retail sales in China totaled 57,152 units in August, down 9.9% compared with the 63,456 units from the same month last year but up 40.7% from July’s 40,617 units, as per data from the China Passenger Car Association (CPCA). Quarter to date, Tesla’s insurance registrations are up 33.2% sequentially but remain 7.8% lower year-over-year.
Despite Tesla China’s year-to-date numbers still being 5.9% lower than the previous year’s figures, it is difficult not to be impressed with the company’s momentum this Q3 2025. With Model Y L production likely picking up steam soon, the trend of the company’s new vehicle registrations in China may very well prove to be quite interesting in the coming quarter.
Investor's Corner
Mizuho raises Tesla (TSLA) price target on stronger 2026 outlook
Mizuho also retained Tesla’s “Outperform” rating despite short-term industry challenges.
Mizuho Securities has lifted its price target for Tesla (NASDAQ:TSLA) shares to $450 from $375, citing a more optimistic view of the electric vehicle market in 2026.
The firm stated that potential tariff headwinds appear less severe than earlier expected, while EV production volumes are trending higher across major automakers. Mizuho also retained Tesla’s “Outperform” rating despite short-term industry challenges.
Mizuho’s take
Mizuho analysts now forecast Tesla will deliver about 1.91 million vehicles in 2026, slightly down from their previous estimate of 1.95 million but still above Wall Street consensus. The firm pointed to Tesla’s planned lower-cost “Model 2” and potential Robotaxi launches as key drivers for growth over the next two years.
“We see TSLA maintaining key leadership in the U.S. BEV market despite some near-term challenges,” Vijay Rakesh, managing director at Mizuho, wrote in a research note.
The note also highlighted Elon Musk’s recently approved compensation package and his $1 billion stock purchase, which Mizuho believes could align incentives with Tesla’s long-term projects, as noted in a Yahoo Finance report. These include advancing autonomous driving technology and pushing development of humanoid robots, both of which remain central to Musk’s vision of the company’s future.
Similar insights
Mizuho is not the only firm that has cited Tesla’s long-term projects and the company’s leadership position in the AI and auto sector. In a recent note, Piper Sandler highlighted that despite the growing number of legitimate competitors for Tesla in places like China, the company still has a foundational role in shaping the industry’s direction, particularly in areas such as battery integration, vehicle software, and AI-powered features.
Piper Sandler also noted that competitors still look to Tesla for advancements in real-world AI applications. “Building AI-enabled machines requires data, talent, chips, and engineering prowess. Tesla compares favorably vs. the Chinese on all of these fronts,,” the firm noted.
News
Tesla bolsters Referral Program with big change and bigger rewards
The Tesla Referral Program offers benefits to both car buyers and existing Tesla owners, including complimentary Full Self-Driving trials, free Supercharging miles, and discounts on select purchases, such as cars.
Tesla has bolstered its Referral Program by offering more significant benefits for both the referrer and the referee. However, it only applies to certain vehicles in the Tesla lineup.
The Tesla Referral Program offers benefits to both car buyers and existing Tesla owners, including complimentary Full Self-Driving trials, free Supercharging miles, and discounts on select purchases, such as cars.
It changes relatively frequently, and is a great way to encourage people to buy a new car. Tesla is routinely making adjustments to it to stimulate demand, but the referral program likely does not encourage too many sales. Instead, it’s more of a reward for the referrer.
However, the latest adjustments are more substantial for both the buyer and the owner, offering pretty sizeable discounts on the purchase price of a Model S, Model X, or Cybertruck.
There are also discounts for current owners, giving them money off of all five Tesla vehicles.
Here’s the rundown of the new Referral Program awards:
- You’ll earn $250 in Tesla Credits for each person you refer who takes delivery of a new Tesla
- The first 10 people who order a new Model S, Model X, or Cybertruck using your referral link and take delivery will receive $1,000 off their purchase
- When you purchase a new Model S, Model X, or Cybertruck for yourself, you’ll get $1,000 off
- When you purchase a new Model 3 or Model Y, you’ll get $500 off
- Limited to 10 awards
Tesla changed the referral program slightly for those using your code! pic.twitter.com/JBFzKlxsJg
— David Lescatre Jr (@DavidLescatreJr) September 21, 2025
This is a pretty big discount as $1,000 off a Model S, Model X, or Cybertruck is a nice benefit to three of Tesla’s most expensive vehicles.
The additional $500 off a Model 3 or Model Y is also a nice cushion. A similar Referral Program was launched by Tesla last August.
Tesla new vehicle registrations in China surge to 12-week high
Mizuho raises Tesla (TSLA) price target on stronger 2026 outlook
Tesla bolsters Referral Program with big change and bigger rewards
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