Tesla Just Confirmed The New 6-Seat Model Y L Will Be Released In China Later This Year

Tesla just revealed its newest model for the Chinese market—the Model Y L—which appeared in the latest vehicle catalog released by China's Ministry of Industry and Information Technology (MIIT). The model, listed under the product code TSL6500BEVBA0, is a six-seater variant.

Tesla China later teased the vehicle on its official Chinese social media account with the message: "Model Y L, see you this autumn!"

A source familiar with the matter suggests that the Model Y L is positioned between the Model Y and Model X, featuring all-wheel drive, extended range, a more spacious interior, and premium finishes. Described as a "large six-seater luxury electric SUV," the new model boasts a wheelbase exceeding 3 meters and an overall length of around 5 meters. The insider revealed that the vehicle is expected to launch as early as Q3 2025, with an estimated price tag of approximately 400,000 yuan (~$55,000).

Compared to the current Model Y, the six-seater version is 179mm longer (4,976mm vs. 4,797mm), with increased wheelbase and height.

Last September, market rumors suggested Tesla planned to begin domestic production of a six-seat Model Y by late 2025, though Tesla China denied the claims at the time. However, during its Q3 2024 earnings call in October, Tesla hinted at plans to introduce "more competitive models."

Tesla at a Crossroads: From Disruptor to Disrupted?

Industry analysts note that the Model Y L’s launch reflects Tesla’s struggle to keep up with fierce competition from local Chinese brands. While Tesla once dominated in sales and profitability thanks to its supply chain cost advantages, domestic rivals have rapidly closed the gap in features, user experience, and pricing.

"The industry’s once-undisputed disruptor now stands at a crossroads—facing potential disruption itself," said one insider.

In Q2 2025, Tesla produced 410,244 EVs globally, delivering 384,122 units. Its Shanghai Gigafactory alone contributed 128,803 deliveries (34% of global sales)—meaning one in every three Teslas sold globally is bought in China. June marked a record high, with 61,484 domestic deliveries (up 59% MoM and 3.7% YoY).

However, underlying challenges remain: Tesla’s H1 2025 China sales fell 5.4% YoY, and its market share has shrunk from 15% in 2020 to just 7.6%. Meanwhile, Model 3 and Model Y sales dropped 11.32% and 16.71% YoY, with Model Y’s market share slipping 1.52 percentage points.

Local Rivals Outpace Tesla in Innovation & Pricing

On June 26, Xiaomi’s YU7—a direct Model Y competitor—racked up 289,000 pre-orders within an hour of launch, thanks to its aggressive pricing and marketing. Other rivals like NIO’s L60, Zeekr 7X, Zhijie R7, Avatr 07, and BYD’s Tang L have also explicitly positioned themselves as Model Y alternatives.

According to the data, in the first half of 2025, emerging EV makers (including NIO, XPeng, Li Auto, Xiaomi, etc.) accounted for 19.5% of China's new energy vehicle retail market share, representing a year-over-year increase of 4.5 percentage points. During the same period, Tesla's market share stood at 4.7%, marking a 1.6 percentage point decline compared to the previous year.

"Tesla’s window for transformation is narrowing," warned an industry expert. While the company initially led in EV adoption, the market has since evolved with faster R&D cycles, rapid model iterations, and relentless price wars.