Tesla (TSLA, Financial) is gearing up to launch an extended, six-seater version of its Model Y SUV in China. This move comes as Tesla's market share in China has been declining due to local automakers introducing more innovative models. The new variant of the popular Model Y will be approximately 15 cm (5.9 inches) longer than the current models and will feature batteries supplied by LG New Energy.
Tesla confirmed the upcoming release on its Chinese social media platform, Weibo, posting two pictures of the SUV and hinting at a fall launch. The announcement has seen Tesla's stock price rise by 3.5% in the New York trading session. Despite ending an eight-month slump in shipments from its Shanghai factory, Tesla's growth in electric car sales in June lagged behind the overall industry trend.
Chinese competitors, led by BYD, have been introducing diverse and competitively priced advanced EV models. Smartphone giant Xiaomi is also challenging Tesla's product line. While Tesla has yet to reveal the pricing for the new model, sources suggest it may be priced around 400,000 RMB. Currently, the base Model Y starts at 263,500 RMB (approximately $36,700) in China.
