by By late 2025, Tesla plans to launch a six-seat version of its well-liked Model Y SUV in China.
As part of its effort to update its best-selling electric vehicle and keep its competitive edge in China’s $319 billion electric vehicle market, Tesla made this decision, which was first reported by Reuters.
The new model will be manufactured at Tesla’s Gigafactory in Shanghai, according to sources familiar with the situation who spoke to Reuters. As a prelude to a “double-digit increase” in Model Y production, the business has already instructed suppliers.
The choice to create a six-seat Model Y was made as Tesla faces increasing competition from regional Chinese automakers that have lowered prices and increased interior space for EVs, including Nio, Xpeng, Leapmotor, and Li Auto.
The Model Y continues to be the best-selling car in China across all categories, even though it fell short of BYD in terms of overall EV sales in the fourth quarter of 2023. Sales of the model reached 207,800 units in the first half of 2024.
In smaller towns where demand is higher, the launch of the six-seat model is perceived as a calculated move to appeal to a wider client base.
To support the anticipated rise in output, Tesla’s Shanghai facility is presently seeking approval for expansion. A 70-hectare parcel of land will be used for the plant’s expansion; however, it is unknown how Tesla plans to handle the increase in production.
Although Tesla is concentrating on growing its wide-seater EV segment in China, the firm is still giving top priority to its robotaxi, which is still on track to make its U.S. debut in October 2024 despite a postponed launch.
