Tesla plans to introduce a new version of the Model Y SUV in China, with production expected to begin as soon as May 2025 at the Shanghai Gigafactory. The updated model will feature a larger size, a new three-row seating layout for six passengers, and increased interior space — a key preference among Chinese customers.
To prepare for production, Tesla intends to pause operations for one week in late April at Giga Shanghai. This brief shutdown will allow the factory to adjust its machinery and processes to accommodate the longer Model Y with a six-seat configuration.
A Strategic Move for the World’s Largest EV Market
Currently, the Model Y is Tesla’s best-selling model globally and leading EV sales in the Chinese market. However, the current design, which could be as limited as a seven-seater in some markets, has not been well received in China due to its compact size that does not meet family and ride-hailing services’ needs. Other domestic competitors such as Nio and Zeekr provide more spacious SUVs at almost similar pricing, which compelled Tesla to bring a longer wheelbase Model Y adapted more for the Chinese market.
NEWS: Tesla model Y extended wheelbase three-row version will be produced in May in shanghai factory
😳😳— 大趙 (@zhongwen2005) April 28, 2025
The new generation is said to be available with only six seats per row – two of them to be more comfortable than the seven-seat option that is available in some markets, such as the US. Thus, it is proposed to change the layout of the seats and, perhaps, add more space for the legs due to the increased track width.
Competitive Pressures Mount
China is the largest and most competitive market for electric vehicles in the world currently. Domestic car makers are producing new models equipped with luxurious interiors, advanced technology, and at a reasonable price. Popular car models such as BYD Nio Onvo L60 and Zeekr 7X directly compete with Tesla, specifically in the market based on the provision of more internal space and affordability. Such factors have forced Tesla to change its strategy of sustaining a market stand in China.
This is being done in a bid to localize the models and sort to meet the demands of specific markets, and that is why the new Model Y variant is in the market. Although there are still no official statements from Tesla about such an undertaking, the rumors from trustworthy sources and insiders suggest that the model is under development.
Broader Revamp and “Project Juniper”
However, apart from this new long-wheelbase Model Y, Musk has hinted at a much broader change to the vehicle under a plan it refers to as ‘Project Juniper’. This will even more represent an update of the five-seater model Y since the new appearance and technology that the Model 3 Highland had would also be expected on this car. That version is expected to be released later in the year 2025, while the six-seat model is thought to be ahead of it in the priority list, especially since it is crucial to the Chinese market.
Tesla has also been increasing localisation and wanting more operational freedom in the Shanghai gigafactory, which presently functions like an export hub for various international regions. Nonetheless, the six-seaters have been reported to be exclusive to China only.
