While working to enhance the appeal of its best-selling yet aging electric vehicle (EV) lineup, Tesla has announced plans to launch a 6-seater model.
Reuters reported on Tuesday, citing two sources directly involved, that Tesla plans to produce a 6-seater variant of the Model Y in China starting in late 2025.
According to an anonymous source, Tesla has requested its suppliers to prepare for a double-digit increase in Model Y production at its Shanghai factory.
The variant of the Model Y, initially launched in 2020, is expected to account for five units and will be released in early 2025 rather than this year as initially planned.
Following a refreshed version of the Model 3 released last year, Tesla saw a 6% increase in Model 3 deliveries globally during the first half of this year.
Despite competition from BYD’s Seagull sedan, Tesla’s Model Y crossover remains the best-selling EV in China, with sales reaching 207,800 units from January to June.
With the introduction of the 6-seater model, Tesla is facing increased pressure from domestic competitors in China while prioritizing the development of autonomous driving technology and robotaxis in the U.S.
Despite reducing its sales staff globally in May as part of broader layoffs, Tesla anticipates a boost in overall sales in China for the third quarter, driven by growth in smaller cities. The expected rollout of fully autonomous driving features in China by the end of the year could further enhance sales.
In the U.S., Tesla already offers a 7-seater Model Y, but it has not been well-received in China due to its cramped third row. The new 6-seater model addresses these concerns and bolsters Tesla’s position in the competitive Chinese EV market.
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