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Tesla intends to launch a six-seater version of its Model Y electric vehicle (EV) in China by late 2025.
According to two sources familiar with the matter, Tesla plans to introduce a six-seat variant of its Model Y electric vehicle (EV) in China by late 2025. This move is part of the U.S. automaker’s strategy to rejuvenate its best-selling but aging model and bolster its appeal in the competitive Chinese market.
One source revealed that the company has instructed its suppliers to prepare for a significant increase in Model Y production at its Shanghai factory. The source, who requested anonymity due to the private nature of the plans, noted that Tesla is aiming for a double-digit production boost.
While Tesla has not publicly commented on the plans, the details raise questions about how the company will scale production at its Shanghai plant. The factory, which is awaiting approval to expand on an additional 70 hectares (172 acres) of former farmland, has already seen a 6% year-on-year increase in domestic and international Model 3 deliveries during the first half of the year, buoyed by the launch of an updated version last year.
Tesla introduced the Model Y in 2020 and has since been working on a revamp under a project codenamed “Juniper.” According to previous reports, the refreshed version of the Model Y, which will retain its five-seat configuration, is now expected to launch in early 2025 rather than this year as initially planned.
The decision to add a six-seater variant highlights the increasing pressure Tesla faces from domestic competitors in China. In contrast, the company focuses on self-driving technology and robotaxi development in the U.S. market.
Chinese automakers have unveiled at least four competitors to the Model Y this year, including the Nio Onvo L60 and Zeekr 7X. These models feature more spacious interiors and come at lower price points than Tesla’s flagship models.
Despite the competition, the Model Y remains the best-selling car in China across all power types, with 207,800 units sold between January and June. However, BYD’s Seagull sedan is quickly gaining ground.
Tesla anticipates a boost in overall China sales during the third quarter, driven by strong growth in smaller cities. This positive outlook comes despite a reduction in the company’s sales force as part of global layoffs in May, which the company believes will lead to improved profitability.
The introduction of Tesla’s Full Self-Driving (FSD) feature in China by the end of the year could further enhance sales. However, Tesla has decided not to introduce its seven-seater Model Y in China, which is available in the U.S., due to the cramped third row. “It’s not even large enough for a large-sized dog,” one source commented.
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