Tesla to Launch Six-Seat Model Y in China by Late 2025

Tesla (NASDAQ: TSLA) Plans to Introduce Six-Seat Model Y in China

Tesla (NASDAQ: TSLA) is set to expand its Model Y lineup with a new six-seat variant, aimed at enhancing its competitive edge in the rapidly growing electric vehicle market in China. According to recent reports, Tesla plans to begin production of this new variant at its Shanghai factory by late 2025 and has requested its suppliers to prepare for an increase in output.

Currently, Tesla offers five-seat and seven-seat versions of the Model Y in the United States, but only the five-seat model is available in China. The introduction of the six-seat version could potentially boost Tesla’s sales and market share in the region.

Initial investor reaction to the announcement was positive, with Tesla’s stock rising nearly 2% in early trading. However, the overall market sentiment was dampened by weaker-than-expected U.S. manufacturing data. The Institute for Supply Management’s Purchasing Managers’ Index (PMI) for August came in at 47.2, falling short of the 47.5 forecast and indicating ongoing contraction in the manufacturing sector.

Despite the initial boost, Tesla’s stock ended the trading day down 1.6%, closing at $210.60. The broader market also faced declines, with the S&P 500 and Dow Jones Industrial Average falling 2.1% and 1.5%, respectively. Additionally, shares of other automotive companies, such as General Motors and Rivian Automotive, experienced declines of 2.8% and 6.9%, respectively.

Tesla's sales have experienced some slowdown recently. In the first half of the year, the company sold approximately 831,000 vehicles globally, a decrease of about 7% year-over-year. In China, Tesla sold around 325,000 vehicles through July, matching the same period in 2023. Preliminary data for August shows Tesla sold 86,697 China-made vehicles, marking a 3% increase year-over-year. This figure includes vehicles exported from China, as Tesla exports roughly one-third of its Shanghai production.

The total battery-electric vehicle production in China increased by about 7% year-over-year through July. In comparison, Tesla’s competitors have posted stronger growth. For instance, Li Auto delivered around 240,000 vehicles, reflecting a nearly 39% increase year-over-year. BYD sold approximately 1.9 million vehicles, up nearly 30% year-over-year, with its battery-electric vehicle sales alone reaching about 856,000, up 14% year-over-year.

As of the latest trading data, Tesla’s stock has declined about 15% year-to-date, lagging behind broader market trends as concerns about growth persist.