Model Y L Photo: Courtesy of Tesla China

Tesla on Tuesday launched its latest model for sale in the Chinese mainland market, the Model Y L, a six-seat sport utility vehicle with a starting price of 339,000 yuan ($47,182.29), as the US electric vehicle (EV) maker competes in the intensifying market with its Chinese rivals.

Tesla retains its first-mover and technological advantages in the EV sector, but these advantages are no longer as pronounced as before, Wu Shuocheng, a veteran automobile industry analyst, told the Global Times on Tuesday, noting that the launch of more specialized models is aimed at strengthening its competitiveness in the Chinese mainland market.

The information on the Model Y L now can be viewed on Tesla China's website, and orders can be placed as well. The website shows that the estimated delivery time is September 2025, and there are variations based on configuration and delivery location.

Compared with the standard Model Y, the Model Y L features larger dimensions, extending the length by 179 millimeters and wheelbase by 150 millimeters, offering a more spacious cabin with a six-seat layout, Tesla said in a press release sent to the Global Times.

The Model Y L boasts a China Light Vehicle Test Cycle range of 751 kilometers with energy consumption as low as 12.8 kilowatt-hours per 100 kilometers.

To attract buyers, Tesla is rolling out a package of financing incentives alongside the launch, including down payments starting from 99,900 yuan with three years of zero interest, or 45,900 yuan with five years of low interest, as well as perks such as paint credits and charging benefits.

Wu pointed out that releasing new models of cars is an effective way to promote sales, and six- or seven-seat vehicles are popular among Chinese households with two or more children. 

However, Wu said that the Chinese market already features six- or seven-seat models from brands such as Li Auto's i8, IM Motors' LS9, and NIO's ES8, catering to the needs of two-child families and group travel. "Tesla does not enjoy a 'first-mover advantage' in this segment, where competition is intense, and the impact on its sales remains to be seen," he said. 

Data from the China Passenger Car Association showed on August 8 that in the first half of 2025, the wholesale sales of Tesla China totaled 67,866, ranking fourth following, BYD, Geely and Changan.

Tesla's delivery performance is also facing challenges in European markets. Tesla's July sales in the UK fell about 60 percent year-on-year to merely 987 units, according to the Society of Motor Manufacturers and Traders, The Times reported on Tuesday.

In Germany, local road traffic agency KBA said that Tesla sold 1,110 cars in July, down by 55.1 percent from a year earlier, while the total number of newly registered EVs increased by 58 percent, Reuters reported on August 5.

Tesla's fiscal report for the second quarter of 2025 showed that the Shanghai Gigafactory remains its main export hub, and continues to support the company's greater market expansion, helping it realizing record delivery volumes in South Korea, Malaysia, the Philippines and Singapore. The report also noted that the annual capacity of the facility has hit 950,000 units, the highest among Tesla's operational plants.

According to an official document from China's Ministry of Industry and Information Technology, a longer-range Model 3 is also coming to the Chinese market. 

In the first half of 2025, vehicle makers in China produced 6.968 million and sold 6.937 million new energy vehicles (NEVs), both up more than 40 percent year-on-year, according to data from the China Association of Automobile Manufacturers. Notably, NEVs made up 44.3 percent of total auto sales, a record high that highlights Chinese auto market's accelerating shift toward electrification.

Wu said that Tesla's new models are intended to further leverage the consumption potential of NEVs in the Chinese market. "Competition in the Chinese NEV market is intense, requiring strong performance in products, technology, and sales strategies," he added.