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.
Stay informed with our financial updates, stocks, bonds, commodities. Get global & political insights. Follow us & enable notifications for the latest updates.
One thought on “Tesla to Launch Six-Seat Model Y in China by Late 2025 Amid Growing Competition”