Tesla Launches Model Y L SUV in China Amid 20% Net Profit Drop

Tesla has officially announced the launch of its new six-seater SUV, the Model Y L, on its China website. The vehicle, priced at 339,000 yuan, is scheduled for delivery in September 2025. This model features a long-wheelbase configuration, providing ample space for passengers and cargo. The Model Y L is equipped with a dual-motor all-wheel-drive system, enabling it to accelerate from 0 to 100 kilometers per hour in just 4.5 seconds. The vehicle's battery, an 82 kWh lithium-ion unit, offers an impressive range of up to 751 kilometers under the CLTC (China Light-Duty Vehicle Test Cycle) standard. The Model Y L also boasts a lightweight body structure, enhancing its overall efficiency and performance.

Tesla had previously hinted at the release of this new model in mid-July, generating anticipation among consumers and industry observers alike. The Model Y L's introduction marks Tesla's continued expansion in the Chinese market, where demand for electric vehicles has been steadily growing. The company's focus on innovation and sustainability is evident in the Model Y L's design and features, positioning it as a strong contender in the competitive SUV segment.

Tesla's financial performance in the second quarter of the year showed a decline in both revenue and net profit. The company reported a 12% year-over-year decrease in revenue to 224.96 billion yuan, while net profit fell by 20.7% to 11.72 billion yuan. The gross margin for the quarter was 17.2%, down from 18% in the same period last year. Despite these financial challenges, Tesla's delivery numbers remained robust, with 384,000 vehicles delivered in the second quarter, although this represented a 13% year-over-year decrease. The decline in deliveries was primarily driven by a 12% drop in sales of the Model Y and Model 3, while high-priced models, including the Cybertruck, saw a 52% decrease in sales.

In the first quarter of the year, Tesla produced 362,600 electric vehicles, down from 433,000 in the same period last year. The company delivered 336,700 vehicles, a decrease from 386,000 in the previous year. These figures highlight the challenges Tesla has faced in maintaining production and delivery targets amid a competitive market and global supply chain disruptions. Despite these challenges, the introduction of the Model Y L demonstrates Tesla's commitment to innovation and its continued focus on the Chinese market, where electric vehicle demand is expected to grow in the coming years.