Tesla to Introduce Longer, Six-Seat Model YL SUV in China, Competing with Toyota and Ford

Tesla is reportedly preparing to introduce a longer, six-seat Model YL SUV in China, competing with Toyota and Ford. Analyst Mark Delaney at Goldman Sachs reiterated a Hold rating and set a price forecast of $285, noting the Model YL will boost Tesla's position in the three-row SUV market. Delaney expects Tesla to deliver 30,000 units of the Model YL in 2025 and 375,000 units in 2027, helping the company capture the three-row SUV segment better.

Tesla is set to introduce a longer, six-seat Model YL SUV in China, aiming to bolster its presence in the competitive three-row SUV market. The new variant, which will be available in China this fall, is expected to feature a longer wheelbase, new wheels, seats, and a modified rear design, along with a new spoiler. The Model YL will be an all-wheel-drive vehicle with dual motors, offering a combined peak power of 340 kW (456 hp) and a top speed of 201 km/h (125 mph) [1].

Analyst Mark Delaney at Goldman Sachs recently reiterated a Hold rating for Tesla and set a price forecast of $285. Delaney expects the Model YL to boost Tesla's position in the three-row SUV market, with the company aiming to deliver 30,000 units in 2025 and 375,000 units in 2027 [2].

The introduction of the Model YL comes as Tesla faces intense competition in the Chinese EV market from domestic manufacturers such as BYD and Xiaomi. Tesla's previous attempts to improve sales in China, including the refreshed "Juniper" Model Y, have not been successful, with a 14 percent drop in global vehicle deliveries reported in the second quarter [1].

The new Model YL is seen as a response to a slew of new three-row EVs recently introduced in China, including NIO's Onvo L90, which starts at the equivalent of USD $39,000. The Model YL is expected to start at over USD $50,000, which may make it a tougher sell for Tesla. The intense price war between Tesla and other automakers is driving Western manufacturers out of China's lucrative market [1].

The Model YL is part of Tesla's broader strategy to expand its product offerings in China and other markets. The company has also applied for a new sales license for a longer range Model 3 Plus sedan, which features a single motor on the rear axle and an LG-supplied NMC (nickel cobalt manganese) battery. The Model 3 Plus is expected to have a longer range than other versions of the electric sedan [1].

While the introduction of the Model YL and Model 3 Plus may help Tesla capture a larger share of the Chinese market, the company faces significant challenges. The intense competition from domestic manufacturers, the high cost of the new variants, and the ongoing price war are all factors that could impact Tesla's success in China.

References:
[1] https://www.theverge.com/news/708279/tesla-model-3-plus-model-yl-china-price-war
[2] https://www.livemint.com/auto-news/tesla-model-y-takes-aim-at-byd-sealion-7-in-india-s-electric-suv-segment-price-range-features-and-more-compared-11752590328582.html