Tesla is gearing up to introduce a six-seater version of its popular Model Y electric crossover in China by the end of 2025, in a strategic move to refresh its best-selling model and stay competitive in the rapidly evolving market, according to sources familiar with the matter, as reported by Reuters.
Tesla has reportedly informed its suppliers to prepare for a significant ramp-up in Model Y production at its Shanghai Gigafactory, signaling the company’s commitment to bolstering its presence in China. The automaker is also awaiting regulatory approval to expand the plant’s footprint by an additional 70 hectares, utilizing former agricultural land to accommodate this increase in production capacity.
Previously, Tesla had planned to launch a revamped five-seater version of the Model Y under the code name “Project Juniper” this year. However, sources indicate that this release has been delayed until early next year. The decision to add a six-seater variant underscores Tesla’s response to growing competition in the Chinese market, where local automakers are introducing new models that challenge Tesla’s dominance.
Chinese competitors have already launched four new models that directly target the Model Y, including the Nio Onvo L60 and Zeekr 7X, both offering more spacious interiors and competitive pricing. These new entrants are putting pressure on Tesla, whose Model Y remains the best-selling vehicle in China, with 207,800 units sold in the first half of 2024. However, the BYD Seagull sedan is closing in on this lead, signaling a shift in consumer preferences.
While Tesla focuses on this new variant for the Chinese market, the company is also prioritizing advancements in autonomous driving technology and the development of robotaxi fleets in the United States, showcasing its dual approach to maintaining leadership in both innovation and market share across key regions.
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