According to sources, Tesla is set to introduce a six-seat version of the Model Y, with production expected to commence in China in 2025.
Tesla is set to introduce a six-seat version of its Model Y in China starting in late 2025, according to two sources familiar with the situation. This move aims to enhance the attractiveness of its top-selling, yet aging electric vehicle (EV).
The company has instructed suppliers to prepare for a
significant increase in Model Y production at its Shanghai facility, as noted
by one source who requested anonymity due to the confidential nature of the
information.
Tesla has not provided a comment on this development.
Details on how Tesla plans to boost production at the
factory remain unclear, especially as it awaits approval for an expansion on 70
hectares (172 acres) of previously agricultural land. The company has already
reported a 6% year-on-year rise in Model 3 deliveries, both domestically and
internationally, during the first half of the year, aided by the launch of an
updated version last year.
The Model Y was first released in 2020 and is currently
undergoing updates under a project referred to as "Juniper," as
previously reported by Reuters. The five-seat variant is now expected to launch
in early 2025, delayed from its original schedule for this year, according to
the second source.
The introduction of a six-seat option highlights the
competitive pressure Tesla faces in China from local manufacturers. In
contrast, the company is focusing on advancements in self-driving technology
and robotaxi initiatives in the U.S.
This year, domestic competitors have introduced at least
four alternatives to the Model Y, including the Onvo L60 from Nio and the 7X
from Zeekr, which offer more spacious interiors at lower price points than
Tesla's flagship models.
The Model Y remains the best-selling vehicle across all
power types in China, with sales reaching 207,800 units from January to June,
although BYD's Seagull sedan is gaining ground.
Tesla anticipates a rise in overall sales in China during
the third quarter, driven by robust growth in smaller cities, despite having
reduced its sales workforce as part of global layoffs in May, indicating a
focus on improved profitability.
Sales may also receive a boost from the anticipated rollout
of its Full Self-Driving feature in China by the end of the year.
Tesla offers a seven-seat Model Y in the United States;
however, the limited space in the third row is likely to deter buyers in China,
according to sources.
“There’s barely enough room for a large dog,” one source
remarked.