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Tesla is gearing up to introduce a six-seat variant of its popular Model Y SUV in China by late 2025.
This move, first reported by Reuters, is part of Tesla’s strategy to refresh its best-selling electric vehicle and maintain its competitive edge in China’s $319 billion electric vehicle market.
Sources familiar with the matter told Reuters that the new model will be produced at Tesla’s Gigafactory in Shanghai, with the company already instructing suppliers to prepare for a “double-digit increase” in Model Y production.
The decision to launch a six-seat Model Y comes as Tesla battles growing competition from other local Chinese manufacturers such as Nio, Xpeng, Leapmotor, and Li Auto, who have introduced more affordable EVs with spacious interiors.
Despite trailing BYD in total EV sales in the last quarter of 2023, the Model Y remains the top-selling vehicle in China across all categories, with sales reaching 207,800 units in the first half of 2024.
The introduction of the six-seat variant is seen as a strategic move to appeal to a broader customer base, particularly in smaller cities where demand is high.
Tesla’s Shanghai plant is currently awaiting approval for expansion, which is crucial for accommodating the planned increase in production. The plant’s expansion is set to take place on a 70-hectare plot of land, although details on how Tesla will manage the production boost remain unclear.
While Tesla is focusing on expanding its wide-seater EV category in China, the company continues to prioritize its robotaxi which is scheduled to launch in the U.S. market in October 2024 after a delay.
