Tesla Model Y Juniper rival by Huawei will be sold at a loss

As the Model Y Juniper refresh release nears, electric car makers are in a race to launch their own direct competitors to the facelift of Tesla's most popular vehicle.

There have been several electric SUVs in the Model Y category announced just in the past few weeks, including the enviable Onvo L60 effort that offers better specs than Tesla, yet at a much lower price.

Onvo is the new midrange brand of storied EV maker NIO that is behind many an excellent electric car, though, but other brands with less manufacturing experience aren't so lucky when they have to find an answer to Tesla's facelift, and fast.

One of those brands is Huawei, which may be a telecommunications and consumer electronics giant, but is yet a fledgling when it comes to crafting electric vehicles. Its sub-brand Luxeed that Huawei develops jointly with Chery - one of the largest automakers in China - just announced a direct Model Y Juniper competitor dubbed the R7.

The coupish SUV has some advantages over the current Model Y that is getting long in the tooth, like the 800V powertrain. The Juniper facelift, however, will also offer an 800V architecture, alongside many upgrades under the hood and in the design department.

The rest of the Luxeed R7 specs are also not all that impressive, as it comes with either an 82 kWh or a 100 kWh long-range battery, while only the top trim has a dual-motor drivetrain for an AWD experience. Also, the acceleration numbers are either what Tesla offers, or slower.

Granted, the larger batteries bring a slightly longer range on a charge than the current Model Y, but by the time Juniper is released in Q1, that advantage might become moot as well. There are some nice touches likea mini fridge in the center console or heated and vented massage seats, but NIO's Onvo L60 also offers such features.

Huawei is also banking on its software prowess to deliver flawless self-driving experience, and has furnished the Luxeed R7 with its Qiankun ADS 3.0 driver-assist kit that includes LiDAR and is end-to-end AI like Tesla's FSD, approved for use both on highways and in the city.

Still, unlike its more experienced Chinese competitors, Huawei couldn't price the Luxeed R7 lower than the Model Y. It starts from the equivalent of $36,940, which is a tad more expensive than Tesla's base Y.

Luxeed R7 prices

• RWD 82 kWh R7 Pro: US$36,950
• RWD 82 kWH R7 Max: US$42,650
• RWD 100 kWh R7 Max: US$45,500
• AWD 100 kWh R7 Ultra: US$48,300

Even so, Huawei's CEO Richard Yu said that the company would still be losing money on each Model Y Juniper competitor sold, to the tune of 30,000 RMB apiece, or about $4,267. He is hoping that the Luxseed R7 will catch on, though, and the economies of scale realized from its mass production will allow it to become profitable.

Needless to say, this happens with most industry newcomers, except for Xiaomi, whose manufacturing prowess amassed from making consumer electronics like air purifiersallowed it to scale the production of its first SU7 electric car very quickly.

Its EV business is now profitable even though it offers a very compelling package in terms of car specs. Xiaomi is also preparing a direct Model Y Juniper competitor, but it will be released next year when Tesla's facelift is scheduled to land as well.

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