Tesla to Launch Six-Seat Model Y in China Amidst Increasing Domestic Competition

Tesla plans to introduce a six-seat variant of its Model Y in China by late 2025, aiming to boost the appeal of its popular yet aging EV. Suppliers have been asked to prepare for an increase in production at Tesla's Shanghai factory. The move underscores competitive pressure from domestic rivals.

Tesla is set to produce a six-seat variant of its popular Model Y car in China by late 2025, according to sources familiar with the plan. The U.S. automaker aims to rejuvenate its aging electric vehicle by catering to the Chinese market's specific needs.

Suppliers have been briefed to prepare for a significant uptick in Model Y production at Tesla's Shanghai factory. The plant, which awaits approval to expand over 70 hectares of former farmland, has already witnessed a 6% year-on-year increase in Model 3 deliveries boosted by a renewed version launched last year.

Despite the competitive pressures from local manufacturers, Tesla remains hopeful for increased sales in smaller Chinese cities in the third quarter. The company also plans to introduce its Full Self-Driving feature in China by year-end, which could further elevate its market presence.

(With inputs from agencies.)