Tesla to manufacture 6-seater Model Y by 2025-end: Report
What's the story
Elon Musk-owned Tesla, is planning to manufacture a six-seater version of its popular Model Y SUV in China by late 2025, according to Reuters. This strategic move is aimed at enhancing the appeal of its bestselling yet aging electric vehicle (EV). Despite awaiting approval for expansion, Tesla's Shanghai factory is gearing up for a significant increase in the car's production.
Production increase
Tesla's production boost
Tesla has reportedly requested its suppliers to prepare for a double-digit increase in Model Y production at its Shanghai facility. The details of how the company plans to ramp up production remain unclear, as the plant is still awaiting expansion approval on 70 hectares of former farmland. This move comes amid increasing competition from domestic rivals, introducing models with more spacious interiors at lower prices.
Revamp
Model Y's success and upcoming revamp
The Model Y, launched in 2020, is currently undergoing a revamp under a project named "Juniper." A five-seater variant of this revamped model is expected to hit the market in early 2025. Despite facing competition from domestic rivals like Nio's Onvo L60 and Zeekr's 7X, the Model Y crossover SUV remains the best-selling car in China across all power types, with sales of 207,800 vehicles from January to June.
Strategy
Tesla's market strategy and future plans
In the US, Tesla is focusing on self-driving technology as well as robotaxi development. However, in China, the company is feeling pressure from domestic rivals who have introduced at least four Model Y competitors this year. These models offer more spacious interiors and are priced lower than their flagship models. Despite a reduction in its sales force due to global layoffs in May, Tesla anticipates an increase in overall China sales for Q3 due to strong growth in smaller cities.