Tesla to Launch Spacious Six-Seat Model Y in China by 2025 – Here’s What You Need to Know

Tesla is planning to introduce a new six-seat version of its Model Y in China by late 2025, according to sources familiar with the matter. This move is aimed at boosting the appeal of the Model Y, Tesla’s best-selling electric vehicle, which is starting to show its age.

To prepare for this new variant, Tesla has asked its suppliers to get ready for a significant increase in Model Y production at its Shanghai factory. However, the details of how Tesla will ramp up production remain unclear, as the factory is still waiting for approval to expand on 70 hectares of land. Despite this, Tesla has already seen a 6% increase in Model 3 deliveries for the first half of the year, thanks to a refreshed version launched last year.

The Model Y was first released in 2020, and Tesla has been working on an updated five-seat version under a project called “Juniper.” This new five-seater is expected to launch in early 2025, later than initially planned.

The decision to introduce a six-seat variant reflects Tesla’s response to growing competition in China, where local rivals have launched several Model Y competitors with more spacious interiors and lower prices. In contrast, Tesla’s focus in the U.S. has been on developing self-driving technology and robotaxis.

Despite the competition, the Model Y remains the best-selling car in China across all types of vehicles, with over 207,800 units sold from January to June this year. However, the BYD Seagull sedan is quickly catching up in sales.

Tesla expects its sales in China to rise in the third quarter, driven by strong demand in smaller cities. This comes even after Tesla reduced its sales team as part of global layoffs in May, aiming for better profitability. Sales could also get a boost with the planned rollout of the Full Self-Driving feature in China by the end of the year.

While Tesla offers a seven-seater Model Y in the U.S., the cramped third row has made it less popular in China. “It’s not even large enough for a big dog,” one source said, highlighting the need for a more spacious six-seat option in the Chinese market.