Tesla to Launch Six-Seat Model Y Production in 2025

Tesla is set to ramp up production of a six-seat version of its Model Y in China by the end of 2025, aiming to bolster its position against intensifying competition in the electric vehicle (EV) market.

Tesla is set to ramp up production of a six-seat version of its Model Y in China by the end of 2025, aiming to bolster its position against intensifying competition in the electric vehicle (EV) market. Despite the rising popularity of Chinese brands such as Nio and BYD, the Model Y remains a top seller in China. Tesla anticipates a boost in sales in the country during the third quarter and plans to introduce its Full Self-Driving feature by the end of the year.

According to a Reuters source, Tesla has alerted its suppliers to prepare for a double-digit increase in Model Y production at its Shanghai factory. The company is currently awaiting approval to expand the factory by 70 hectares using adjacent former agricultural land. Last year, the factory reported a 6% increase in Model 3 deliveries both domestically and internationally, driven by the launch of an updated version.

The Model Y, which debuted in 2020, was initially expected to see the release of a new five-seat version, dubbed Project Juniper, later this year. However, production has been delayed until early next year. The introduction of the six-seat Model Y is a strategic response to the intensifying competition in the Chinese market. Meanwhile, Tesla is focusing on autonomous driving technology and robotaxi development in the U.S.

This year, Nio and Zeekr have unveiled the Onvo L60 and 7X models, respectively, offering more spacious interiors at more competitive prices. Despite these developments, the Tesla Model Y continues to lead sales among all vehicle types in China, with 207,800 units sold between January and June. However, the Seagull sedan from BYD is rapidly gaining traction, narrowing the gap.

Tesla forecasts an increase in sales in China for the third quarter due to strong demand in smaller cities. Despite a reduction in staff in May, the company expects improved financial performance. The rollout of the Full Self-Driving feature in China by year-end is also anticipated to drive sales further.