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Tesla to Launch Six-Seater Model Y in China by 2025, Aiming to Spark New Interest

Word on the StreetTuesday, Sep 3, 2024 1:00 am ET
1min read
Tesla plans to introduce a six-seater version of its Model Y SUV in China by the end of 2025, aiming to cater to specific demands in the Chinese market and rejuvenate the vehicle's appeal. Tesla has yet to comment on this development.

According to sources, while a seven-seater Model Y is slated for sales in the United States, the Chinese variant will only feature six seats due to the unpopularity of the narrow third row among Chinese consumers. The third row is reportedly so cramped that "it can't even fit a large dog." Tesla has already instructed its suppliers to prepare for a significant production increase at its Shanghai facility to accommodate the new model.

Tesla initially launched the Model Y in 2020 and has been working on a facelift project codenamed "Juniper." This updated version, initially pegged for a 2024 release, is now expected to debut in early 2025, offering a seating capacity for five passengers.

Analysts believe the introduction of the six-seater Model Y highlights the competitive pressures Tesla faces in China. Meanwhile, in the United States, the company is prioritizing the development of self-driving technology and robotaxis.

Despite cutting its sales staff in May, Tesla anticipates overall sales growth in China for Q3, driven by strong demand in smaller cities. Additionally, the company plans to launch its Full Self-Driving (FSD) feature in China by the end of the year, which could potentially boost its sales further.
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