Tesla Model Y: Too many versions for what real need?

Tesla just added a new Model Y AWD configuration in the United States, but honestly, is this really what customers are looking for? As a Tesla enthusiast, I’m the first to applaud innovation, but here, I’m seriously questioning it.

This multiplication of Model Y versions masks a gaping hole in the lineup. While Tesla refines minor variants, competitors are cornering the family SUV market with spacious and practical vehicles.

Let’s break down this strategy together, which leaves me perplexed and could cost Tesla dearly in the long run.

New versions that all look a little too similar

The new Model Y AWD represents an entry-level all-wheel drive option, certainly, but with no gain in space or versatility. When I look at the different configurations available – Long Range, Performance, new AWD – I mainly see differences in driving range and power, but always the same platform, the same cabine intérieure.

After 3 years with my Model Y, I know its qualities perfectly: dynamic, embedded technology, Supercharger network. But also its main limitation: space for a maximum of 5 people. And no new version changes that.

In terms of aesthetics, all versions look like two drops of water. No striking visual differentiation that would truly justify this multiplication of versions. Families are looking for space, not an extra 10 km of driving range or 0.2 seconds less on the 0-100 km/h.

The Model X disappears, and with it Tesla’s only family SUV

The gradual discontinuation of the Model X marks a worrying turning point. Tesla is ending production of its full-size SUV, the one that offered 6-7 seats and represented the only option for large families.

My analysis? It was the only Tesla vehicle truly suitable for families with multiple children. The American market, however, remains dominated by Chevrolet Tahoe, Ford Expedition, Cadillac Escalade… Three-row behemoths that Tesla leaves untouched, as if this segment didn’t exist.

The concrete consequences are immediate: families of 5+ people who want to stay in the Tesla ecosystem no longer have a solution. I can easily imagine this testimony: “I love my Tesla, but with 3 children and in-laws to transport regularly, I have to look elsewhere.”

The Model X was expensive, it’s true, but it met a crucial family need. Its abandonment creates a huge hole in the Tesla lineup.

The Model Y Long already exists… but only in China

Production already in place in Shanghai

The Model Y L is currently produced at the Shanghai Gigafactory. This long-wheelbase version with a third row of seats is not a futuristic concept; it’s a tangible reality.

The technical proof that Tesla perfectly masters this configuration is there, right before our eyes. Photos and specifications are publicly available. The technology exists, the production line is running.

Why not in the United States, the largest SUV market?

This is the paradox that leaves me speechless: the US market is THE territory for large SUVs, yet Tesla doesn’t offer the Y Long there. Rumors suggest a possible arrival in late 2026, but nothing has been officially confirmed.

My incomprehension is total. Demand is massive, the technology exists, Tesla’s production in China continues to raise questions, so why wait? Tesla cites production complexity, but China is already achieving it without apparent problems.

The loss of the $7,500 tax credit in 2025 makes the timing even more critical. Buyers lose a major financial advantage at the very moment Tesla doesn’t have the right product to offer.

Robotaxi: when futuristic vision overshadows today’s needs

Tesla’s strategic focus is clearly shifting towards the development of Robotaxi and full autonomous driving. Elon Musk talks more about autonomous fleets than family vehicles, and it shows in the company’s priorities.

My observation? Tesla is taking a big risk with this approach. While the company looks to 2030, 2025 customers are buying elsewhere. A McKinsey study highlights that a third of buyers consider the absence of CarPlay to be a deal-breaker – a perfect example of this disconnect from real expectations.

I seriously fear an Osborne Effect: if people wait for the next big thing (Robotaxi, Model Y L, the future $25,000 compact car that Tesla is preparing), they won’t buy current models. Tesla risks losing loyal customers by failing to listen to immediate needs.

Balance is necessary: yes to innovation and long-term vision, but without neglecting the current lineup and concrete market demands.

The American three-row SUV market: a neglected gold mine

The US SUV market represents the largest global market for three-row vehicles. Tahoes, Expeditions, and the like sell by hundreds of thousands of units each year. It’s colossal.

The electric opportunity is even more interesting: this segment is just beginning its electric transition. Tesla could be a leader and set the standards, but the company is letting Rivian with its R1S, BMW with the iX, Mercedes with the EQS SUV quietly establish themselves in this lucrative niche.

The Double Handicap 2025 becomes problematic: loss of tax credit + absence of a large electric SUV = a difficult commercial cocktail to swallow. My calculation is simple: even 5% of this market would represent tens of thousands of annual units for Tesla.

An open question I ask myself: how long can Tesla afford to ignore this massive segment? When you look at the interior of the current Model Y, which I know well, you quickly understand the space limitations for a growing family.

I love Tesla, I’ve been driving a Tesla for 3 years now, but this strategy really worries me. The message I would like to convey to the Tesla teams is simple: listen to your customers, not just your AI engineers and futuristic projections.

The Model Y Long in the United States should be an absolute priority. If Tesla misses this crucial turn, other brands will not hesitate to pick up these frustrated customers. The electric family SUV segment is exploding, and according to industry analysts, demand will only increase in the coming years.

There is still a glimmer of hope: Tesla has proven it can pivot quickly when necessary. Remember the massive price drops in 2023; no one saw them coming. The company knows how to react when it wants to.

And you, would you wait for a 7-seater Model Y or would you turn to the competition?