It is being reported that Tesla is in the final stages of introducing a new 6-seater version of its popular Model Y in China, called the Model Y L. Very early speculation thus has this new variant priced at about 400,000 yen (about $55,600). Assuming this is correct, it would be significantly ahead of the current Model Y Long Range AWD and represent a 28% price increase.
The Model Y L might be the next step for Tesla in entering the premium segment of electric family SUVs on the market, while also maintaining its status as the global leader in the EV market. Here’s what we know so far and what it may mean to the product strategy Tesla has in China and elsewhere.
A Premium Price Point
The rumoured price of the Model Y L at 400,000 yuan is reportedly 28% more than the Model Y Long Range AWD in China, which is now selling at approximately 311,900 yuan (~$43,400). This significant price increase implies that, in addition to having more seats, the Model Y L will feature other upgraded elements, materials, or performance improvements to distinguish it from its regular counterparts in the Model Y line.
The alleged pricing of the Model Y L would be about $62,000 in the United States and about 67,000 Euros in Europe, compared to the standard pricing of the Model Y in both places, but way higher than the expected pricing of the regular Model Y. Contextually, the U.S. long-range AWD Model Y begins at approximately $49,000 before incentives.
The introduction of the 6-seater version will attract buyers who are looking for a more spacious and family-friendly car. Although the 5-seater configurations have been suitable to serve the urban and small family segments of the market, the third row increases the market value of the vehicle to suit larger families and even buyers of the vehicles in commercial fleets like the ride-hailing companies or executive transportation.
This also serves to close a hole in Tesla vehicles: the people who desire more occupancy space must ascend to the Model X, which costs virtually twice the standard Model Y price. Model Y L: Model Y is another follow-up with a 6-seat offering and a more affordable option to those who need space without spending money on a Model X.
Design and Features: What to Expect
Although Tesla did not confirm the specs of the Model Y L, the industry insiders and spy shots indicate that the third-row seats could appear either in the form of a longer wheelbase and the rear end, or an extended wheelbase overhang. The package would also probably include interior improvements in the form of better second-row sliding seats, better rear passenger HVAC systems, and new upholstery choices.
Considering Tesla is obsessed with efficiency, there is a chance that the Model Y L will employ the same dual-motor all-wheel-drive powertrain of the Long Range version, but weight and size changes may result in a slight range reduction. This version may include more functions at the advanced driver assistance level, such as Full Self-Driving (FSD) or Enhanced Autopilot.
Global Implications and Strategy
The Model Y L, which is the subject of various rumors, is not only a different trim it also symbolizes the intent of Tesla as a whole to diversify its competencies and adapt more locally to provide more options to customers. Tesla is behind China, second only to the U.S. in market size, which is witnessing high-growth of EV adoption, and competition is building locally in the premium SUV segment.
The main benefit of providing a roomy, upmarket variant of an already successful model like the Model Y is that it will enable Tesla to stay competitive against its domestic competition, which includes BYD, Xiaomi, Li Auto, and NIO.
Assuming that the Model Y L will be successful in China, it can export or recreate it to suit other markets where large family and luxury SUVs are needed. Even its estimated U.S. price of only $62,000 would beat the Model X, and it would also represent a nice choice by U.S. families wanting an electric luxury SUV but without paying the six-figure price that the Model X commands.
