Key Takeaways
- Tesla reportedly is planning to add a six-seat version of its Model Y to its lineup of electric vehicles (EVs) sold in China.
- Both five- and six-seat versions will launch sometime in 2025, according to Reuters.
- Tesla is facing increasing competition in China from a number of lower-cost domestic EV rivals.
Tesla (TSLA) reportedly is planning to launch a six-seat version of its Model Y in China, rather than just the previously reported five-seat model, with production projected to increase at its Shanghai factory, according to Reuters.
Both the five- and six-seat versions will launch in China sometime in 2025 as Tesla looks to hold its market share from the growing domestic competitors offering lower-cost electric vehicles to consumers in the world’s largest EV market.
Tesla did not immediately respond to an Investopedia request for comment.
New Tesla Models Highlight China’s EV Wars
Tesla has faced increasing competition in recent quarters from a number of Chinese EV makers who offer less expensive cars, including XPeng (XPEV), Nio (NIO), Li Auto (LI), and BYD (BYDDY). Reuters cited people familiar who said the seven-seat Model Y that Tesla sells in the U.S. would not be as popular in China because of a crowded third row.
The company has also said it expects to receive approval to roll out its self-driving software in China this year, which would give Tesla valuable data to continue training the technology, which will be a key factor in other projects like the robotaxi it is set to debut next month.
Tesla shares initially rose at the opening bell Tuesday but reversed course and were down less than 1% to $213.14 as of 10 a.m. ET. They are down 14% this year.