Tesla is set to introduce a new six-seat Model Y in 2025, expanding its lineup with an innovative offering aimed at the growing demand for family-friendly electric vehicles
According to two individuals with direct knowledge, Tesla (TSLA.O) reportedly plans to manufacture a six-seat version of its Model Y car in China starting in late 2025.
The U.S. automaker is endeavoring to enhance the allure of its best-selling yet aging electric vehicle (EV).
One of the individuals, who declined to be identified because the plan is not public, stated that Tesla has requested that suppliers prepare for a double-digit increase in Model Y production at its Shanghai factory.
Tesla did not quickly address a request for comment.
It was unclear how Tesla would increase production at the plant, which is currently awaiting approval to expand on 70 hectares (172 acres) of former farmland.
The Model 3 has already experienced a 6% year-over-year increase in domestic and international deliveries from January to June, facilitated by the release of a revised version last year.
The Model Y was introduced by Tesla in 2020 and has been undergoing a redesign under the “Juniper” initiative, as reported by Reuters.
According to the second individual, the variant in question will be introduced in early 2025 and will accommodate five individuals, as opposed to the original plan for this year.
Tesla is prioritizing the development of self-driving technology and robotaxis in the United States. At the same time, the inclusion of a six-seater variant in China underscores the pressure from domestic rivals.
This year, those competitors have introduced at least four Model Y competitors, including the Onvo L60 from Nio (9866. HK) and the 7X from Zeekr (ZK.N).
These vehicles feature more spacious interiors and are priced lower than premier models.
The Seagull sedan from BYD is closing up to the Model Y crossover, which is the best-selling car in China among all power types, with sales of 207,800 vehicles from January to June.
Even though Tesla reduced its sales force as part of global layoffs in May, it anticipates that its overall China sales will increase in the third quarter due to robust growth in smaller locations. This suggests that profitability has improved.
The introduction of its Full Self-Driving feature in China by the end of the year could also increase sales.
Tesla offers a seven-seater Model Y in the United States; however, individuals claimed that the vehicle’s third row would be controversial in China due to its cramped layout.
