Tesla is set to launch a new six-seat version of its popular Model Y electric vehicle in China by 2025, according to sources familiar with the matter. This move comes as the American EV giant looks to bolster its position in the highly competitive Chinese market, where domestic automakers are rapidly gaining ground.
The six-seat configuration is expected to be more advantageous for Chinese consumers compared to the seven-seat version sold in the United States, which has faced criticism for its cramped third row. The new model will likely offer a more spacious and comfortable interior, catering to the preferences of Chinese buyers.
As Reuters reports, to support the production of the six-seat Model Y, Tesla is planning a double-digit increase in output at its Shanghai factory. The company has already started contacting suppliers to prepare for this ramp-up in production. Additionally, Tesla is seeking to expand its Giga Shanghai plant, although the expansion is currently awaiting approval from Chinese authorities as Teslarati points out.
The introduction of the six-seat Model Y comes at a crucial time for Tesla, as it faces mounting pressure from domestic Chinese EV makers such as XPeng, Nio, Li Auto, and BYD. These competitors have been gaining market share by offering lower-cost electric vehicles to consumers, forcing Tesla to adapt its strategy to maintain its position in the world’s largest EV market.
In addition to the new Model Y variant, Tesla is also expecting to receive approval to roll out its self-driving software in China this year as investopedia reports. This approval will be critical for the company, as it will allow Tesla to collect valuable data and further train its autonomous driving technology in real-world conditions.
Looking ahead, Tesla has several other projects in the pipeline, including the highly anticipated debut of its robotaxi service. As the Chinese EV market continues to evolve and grow, Tesla will need to remain agile and innovative to stay ahead of the competition and maintain its position as a leader in the industry.
