Tesla expands China lineup with new Model Y L starting at $47,200

On the Dash:

• Tesla is launching the new six-seat Model Y L in China, offering extended range and seating to compete in the family SUV market.
• The move aims to regain market share as Tesla faces increasing competition from domestic Chinese EV makers and slowing demand.
• Success in China is vital for Tesla as an American automaker, since the market represents a major portion of global EV sales and revenue.

Tesla has started accepting orders for its new Model Y L in China, priced from $47,200, as the company refreshes its lineup in the world’s largest auto market. Deliveries are expected as early as September, positioning Tesla to compete more directly with domestic rivals in a highly competitive segment. Success in China is critical for the U.S.-based automaker, as the market represents a major portion of global EV sales and revenue.

The Model Y L is an extended version of Tesla’s top-selling SUV, roughly 5.9 inches longer than the standard Model Y to accommodate a third row of seats. The six-seat vehicle offers a range of 467 miles per charge, similar to the performance version of the existing five-seat Model Y, which starts at $43,600.

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Tesla has faced growing pressure from local competitors, with deliveries dropping 12% year-over-year in July. The Model Y L’s competitive pricing aims to regain market momentum while Tesla continues to work on its Full Self-Driving (FSD) technology, which has seen slow rollout despite pilot testing since February.

The launch follows Tesla’s earlier moves to refresh its China lineup. In January, Tesla introduced a redesigned Model Y with upgraded features for Asia Pacific markets and a longer-range, rear-wheel drive Model 3 for China.

Tesla first launched the Model Y in 2020, and it became the world’s best-selling car in 2023. However, the aging model lost some momentum last year as competition intensified and demand for electric vehicles softened in some markets. The new Model Y L is part of Tesla’s strategy to maintain relevance in China, offering additional seating and competitive pricing to appeal to families while reinforcing its presence in a highly competitive EV market.