Tesla has announced the imminent launch of its bigger Model Y variant called the “Model Y L.” The larger SUV is Tesla’s attempt to appeal to Chinese customers and divert attention from domestic EV brands to its products after facing several losses in the Chinese market. Tesla Inc. is introducing a longer, six-seat version of its popular Model Y SUV in China. This move is widely seen as the company’s attempt to regain market share in the world’s largest electric vehicle (EV) market. The new variant, called the Model Y L, will be about 150 centimeters (5.9 inches) longer than the standard version, according to details published Wednesday by China’s Ministry of Industry and Information Technology (MIIT). While the company has not disclosed the price or release date, Tesla confirmed the vehicle’s launch on its official Weibo account. “Model Y L, see you in the autumn!” The post read. It also included two teaser images. The company also confirmed that LG New Energy will be supplying the batteries for the vehicle. Tesla is expanding its Model Y in China The Model Y is Tesla’s top-selling car globally, and its performance in China is critical to Tesla’s overall success. The company’s Shanghai gigafactory is a major export hub and production center. In recent months, Tesla has faced mounting pressure in China from increasingly competitive local brands that offer a wider variety of EVs with more features and lower price points. Chinese consumers have shown growing interest in multi-seat electric SUVs, especially those with tech-enhanced driving experiences, entertainment systems, and autonomous driving support. Tesla’s new design may aim to close that gap. The competition in China’s EV market Tesla’s decision to update the Model Y is due to the recent downturn in its sales in China. The EV maker recently broke an eight-month streak of declining shipments from its Shanghai factory, but it is still lagging in the EV industry in terms of wholesale growth. Xiaomi, best known as a smartphone manufacturer, recently entered the EV space with models targeting Tesla’s market share, emphasizing smart connectivity, competitive pricing, and stylish designs. BYD, in particular, has dominated the local EV scene, offering a broader portfolio of options ranging from compact electric sedans to high-end SUVs. Tesla has not confirmed whether the bigger SUV will include localized features or software upgrades to match competitors’ smart cabin functions. The company is also yet to clarify if the longer model will retain the same driving range, performance, or price efficiency as the base SUV, which starts at 263,500 yuan, about $36,700. Industry watchers have also noted that Tesla has recently been relying on price cuts and discounts to maintain demand in China, which could affect the Model Y L’s pricing strategy. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
