Tesla set to introduce six-seat Model Y in China by late 2025- Reuters

Tesla (NASDAQ:) is set to produce a new six-seat version of its Model Y vehicle, targeting a launch in China by late 2025, Reuters reported Tuesday.

The move is part of the company’s strategy to refresh its best-selling electric vehicle (EV), which first hit the market in 2020 as the company seeks to enhance the Model Y’s appeal amidst growing competition from domestic EV manufacturers in China.

Tesla has communicated to its suppliers the need to prepare for a significant increase in Model Y production at its Shanghai factory, according to the report.

Although specific details on how Tesla plans to boost production were not disclosed, the Shanghai plant is currently pending approval for an expansion onto an adjacent 70-hectare plot of former farmland.

Tesla has already achieved a 6% year-on-year rise in domestic and international deliveries of the Model 3 for the first half of the year, following the introduction of an updated version last year.

The introduction of the six-seater Model Y variant is a strategic move to maintain Tesla’s competitive edge in the Chinese market, where local EV makers are exerting pressure on the American automaker.