Hashem said to him. "Your name is Yaakov; no longer will you be called by the name Yaakov but rather Yisrael will be your name, and he named him Yisrael."
This name change was also done to Avraham. The Torah tells us וְלֹא יִקָרֵא עוֹד אֶּת שִׁמְךָ אַבְרָם וְהָיָה שִׁמְךָ אַבְרָהָם - No longer will you be called by the name Avram, but your name will be Avraham. The Gemara tells us that someone who calls Avraham by the name of Avram transgresses a positive commandment. However, when it comes to Yaakov, there is no such command. Yaakov’s name was changed to Yisroel, but he is still known as Yaakov. What is the reason for this difference?
The Gemara explains that the source for this difference is because אהדריה קרא – the possuk returned it. Even after Yaakov’s name change, the Torah uses the name Yaakov, so it is obvious that the Torah never meant to forbid the use of the original name. With Avraham’s case, the original name Avram is never used again after the name change.
The Ohr Hachaim notices another difference between the pessukim of Avraham and those of Yaakov. When Hashem changed the name of Yaakov, the possuk begins with שִׁמְךָ יַעֲקֹב - Your name is Yaakov. Why did the Torah have to precede the name change with a declaration of the old name? Obviously, the Torah is announcing that Yaakov’s name is immutable, and even after the new name of Yisroel was bestowed on him, Yakov would stay.
But the Ohr Hachaim is still bothered by the question of why it is like that. Why did the Torah change Avram’s name irrevocably, whereas with Yaakov the change was only partial?
The Ohr Hachaim explains the reason behind this difference. The name of a person is his essence; it is connected to his Neshama and its purpose in the world. Yaakov’s nefesh was called Yaakov as part of his purpose in life. When he grew spiritually, he had a new purpose in life, which is symbolized by the name Yisroel. However, his old name did not change. He still had two purposes in life and his connection to Hashem went through two paths. Avraham’s entire job in this world was changed with his new name.