Tesla plans to launch a seven-seat version of the Model Y in China and Europe in October, with production of the model already underway at Giga Shanghai, according to local media.
Tesla (NASDAQ: TSLA) is planning to launch a China-built seven-seat version of the Model Y in the Chinese and European markets in October, local media outlet National Business Daily said today, citing an unspecified report.
Production of the model has already begun at Tesla's Shanghai Gigafactory, the report said.
National Business Daily said they are seeking confirmation from Tesla's China team but have yet to receive a response.
An hour after the National Business Daily report was published, Shanghai Securities News cited a Tesla source as saying that it was false news that the Shanghai Gigafactory was already producing a seven-seat version of the Model Y. The person did not comment on other parts of the National Business Daily report.
When Tesla unveiled the Model Y in March 2019, it showed off its seven-seat flexibility. It wasn't until 2021 that Tesla began offering additional seven-seat options in the US market.
Currently only the four-wheel-drive, dual-motor Model Y Long Range supports the seven-seat option in the US, with consumers having to pay an additional $2,000.
Last September, it was reported that Tesla was planning to release an updated version of the Model Y in the first half of 2024, with sales expected to begin by the end of 2024, National Business Daily's report today noted.
The report at the time said the revamped seven-seat Model Y would weigh 45 kilograms more with the addition of a third row of seats, and the maximum passenger weight limit would be increased by an additional 70 kilograms, National Business Daily said.
Currently, the seven-seat version of the Model Y produced in China has completed the needed certification processes in Europe, according to National Business Daily.
The emergence of rumors of a seven-seat Model Y is linked to Tesla's need to boost its performance, the report said, citing unnamed industry sources.
Revenue from Tesla's core automotive business came in at $19.9 billion in the second quarter, down 7 percent compared to the same period last year, the report noted.
Meanwhile, Tesla has underperformed other brands in some markets. For example, in July, BMW outsold Tesla in Europe for the first time, ending a lead Tesla had held since the Model Y entered the market in 2020, the report said.
Tesla has a factory in Shanghai, its largest in the world. Giga Shanghai began delivering the Model 3 in January 2020 and the Model Y in January 2021 to local consumers.
Both the Model 3 and Model Y currently available in China are five-seat versions.
The Model Y is popular in China, contributing the lion's share of Tesla's sales in the country, as consumers have a greater preference for more interior space.
Model Y wholesale sales in China from January to July 2024 were 298,384 units, the highest of any battery electric vehicle (BEV) model in China, according to a ranking released on August 12 by Cui Dongshu, secretary-general of the China Passenger Car Association.
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