Tesla is reportedly preparing to launch a new six-seater version of its popular ‘Model Y SUV’ in China to expand its presence in the world’s fast-growing electric vehicle market. The model, referred to as the Model Y L, has recently appeared in filings submitted to China’s Ministry of Industry and Information Technology (MIIT), reports Reuters. Its production is expected to take place at Tesla’s Gigafactory in Shanghai, the company’s largest manufacturing facility globally. This factory already produces the standard Model Y and Model 3 for both the Chinese market and export to other regions.

The Elon Musk-led EV giant has also teased the new model on its official Weibo account, posting an image that matches the version filed with Chinese authorities. According to the report, the post included a message that read, ‘Model Y L, see you in the fall’. This statement indicates that the vehicle is expected to launch in China sometime in the coming months (most likely in the third or fourth quarter of 2025).

Notably, the company already offers a seven-seat configuration of the Model Y in other markets like the United States. However, that version has often faced criticism for limited space in the rear-most seats. And therefore, the upcoming Model Y L is said to feature an extended wheelbase of 3,040 mm to offer a more spacious interior layout. Additionally, this six-seat layout might include captain chairs in the second row.

This upcoming version is believed to be part of the company’s broader vehicle refresh strategy, internally known as ‘Project Juniper’, which involves a mid-cycle update to the Model Y. The facelift introduced earlier this year includes a range of upgrades like redesigned headlamps and taillights, a rear touchscreen for backseat passengers, power-adjustable rear seats, and improvements to suspension and cabin insulation. The Model Y L is expected to incorporate all of these changes, along with its expanded dimensions and updated interior configuration. In terms of pricing, the model is expected to be positioned slightly above the standard Model Y.

The timing of the launch comes as Tesla is currently experiencing significant decline in sales, having reported its second consecutive quarterly drop in global deliveries. In Q2 2025, the company delivered 384,122 vehicles, which shows a 13% decrease from the same quarter in the previous year. The company also faces rising competition in China from domestic electric vehicle makers like BYD, Li Auto, and newer entrants like Xiaomi. Even in Q1 2025, BYD reported a 58% increase in deliveries of its battery-electric and plug-in hybrid vehicles, while Tesla witnessed a 13% year-over-year drop

However, in response to these challenges, the Musk-led company now seems to be making aggressive efforts. Recently, Tesla made its official debut in India with the launch of the Model Y, priced around $70,000. Also, the EV maker rolled out its latest software update (version 2025.26), which integrates Grok (Beta), a conversational AI chatbot developed by xAI.