By bigbreakingwire 
Tesla is planning to introduce a six-seat version of its popular Model Y electric vehicle in China by late 2025, according to Reuters sources familiar with the matter. This move comes as the American automaker aims to boost the appeal of the Model Y, which has been a best-seller but is now facing increased competition.
Tesla has reportedly informed its suppliers to prepare for a significant increase in Model Y production at its Shanghai factory. This factory, which has already contributed to a 6% year-over-year rise in Model 3 deliveries in the first half of 2024, is awaiting approval to expand further. However, it remains unclear how Tesla plans to scale up production at the site, which occupies 70 hectares (172 acres) of land.
The new six-seat variant of the Model Y will complement the current five-seat version, which has been undergoing updates under a project known as “Juniper.” Initially, the updated five-seat version was expected to launch in 2024, but it has been pushed to early 2025, according to one of the sources.
Tesla’s decision to introduce a six-seater variant is seen as a response to growing pressure from domestic EV manufacturers in China. Companies like Nio and Zeekr have released competing models with more spacious interiors at lower prices. For instance, Nio’s Onvo L60 and Zeekr’s 7X are among the latest entries that challenge the Model Y in the Chinese market.
Despite the competition, the Model Y remains the best-selling vehicle in China across all power types, with sales of 207,800 units in the first half of 2024. However, it faces stiff competition from BYD’s Seagull sedan, which is quickly gaining traction.
Tesla’s overall sales in China are expected to grow in the third quarter of 2024, driven by strong demand in smaller cities. This comes even after the company reduced its sales workforce as part of global layoffs in May, which has contributed to improved profitability. Additionally, Tesla is planning to introduce its Full Self-Driving feature in China by the end of the year, which could further boost sales.
While Tesla already offers a seven-seater Model Y in the U.S., the third row is considered too cramped for the Chinese market, making it less appealing to local consumers. One source even joked that the third row isn’t large enough for a big dog.
As Tesla continues to innovate and adapt to the rapidly evolving Chinese EV market, the introduction of the six-seater Model Y could play a crucial role in maintaining its leading position in the world’s largest auto market.
Inputs from Reuters.
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[…] Tesla’s plan to introduce its most advanced Full Self-Driving (FSD) technology in China appears to have encountered a slight delay. According to a recent post by Tesla’s AI team on X (formerly Twitter), the highly anticipated feature is currently awaiting regulatory approval in China, and its rollout might not happen until the first quarter of 2025.The Full Self-Driving (FSD) software, which has been under development for years, allows Tesla vehicles to navigate and perform tasks autonomously, with minimal driver intervention. However, in China, strict regulations surrounding autonomous driving technologies have presented challenges for Tesla and other automakers. Tesla has been actively working with Chinese regulators to meet the country’s stringent safety and data privacy standards. Despite Tesla’s efforts to accelerate the process, it seems that local authorities may require more time to approve the technology, delaying its official launch.This delay might impact Tesla’s competitive edge in China, where local automakers like Nio and Xpeng are also working on advanced driver-assistance technologies. Tesla’s Model Y and Model 3 vehicles are already highly popular in China, and the introduction of FSD would further enhance their appeal in the market. However, this delay gives competitors more time to strengthen their own autonomous driving capabilities.In the meantime, Tesla continues to expand its production capabilities in China, with the Shanghai Gigafactory serving as a hub for manufacturing its electric vehicles. The company also plans to roll out a six-seat variant of its Model Y from late 2025, further boosting its presence in the Chinese market.Once Tesla’s FSD technology receives approval in China, it is expected to be a game-changer, allowing Tesla to tap into the country’s rapidly growing market for autonomous vehicles. However, until regulatory hurdles are cleared, the timeline remains uncertain.While Tesla’s Full Self-Driving rollout in China faces delays, the company’s ongoing efforts and regulatory cooperation suggest that its advanced technology could still make a strong impact in 2025. As Tesla continues to expand its product lineup and production capacity, the FSD approval will be a key factor in the company’s future success in one of the largest EV markets in the world.This delay gives competitors a temporary advantage, but Tesla’s leadership in AI and autonomous technology positions it well for the future. […]