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Electric Vehicle

Tesla Launches Larger Model Y L Production at Shanghai Factory

Highlights

  • Mass production of Tesla Model Y L has reportedly started in Shanghai.

  • The vehicle features three rows and a six-seat layout.

  • Model Y L is eligible for tax exemptions in China.

Samantha Reed
Last updated: 9 August, 2025 - 2:19 pm 2:19 pm
Samantha Reed 3 hours ago
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Anticipation around Tesla‘s product line is growing as reports from China indicate that the automaker has begun producing the new Model Y L at Gigafactory Shanghai. This latest version of Tesla’s popular Model Y introduces an extended wheelbase and a three-row, six-seat configuration, aiming to address increasing consumer interest in versatile electric SUVs. Sources familiar with Tesla’s processes reveal that select stores in China are being prepared to showcase the Model Y L, and industry analysts are evaluating its potential impact on the market for large electric vehicles. The shift in production comes at a time when competition within the electric SUV sector is intensifying and consumer preferences continue to evolve.

Contents
How Does the Model Y L Differ from Standard Models?What Are Tesla’s Expectations for the Market?Could Model Y L Suit Tesla’s Robotaxi Plans?

Recent coverage by industry observers had previously centered on upgrades and sporadic sightings of pre-production vehicles, but no large-scale output had been confirmed until now. Earlier speculation largely focused on the prospect of model enhancements rather than a significant expansion to a three-row version. The latest developments mark a departure from earlier reports that mainly predicted incremental technology improvements, placing more attention on the Model Y’s market positioning against premium three-row competitors such as the Model X and other international electric SUVs.

How Does the Model Y L Differ from Standard Models?

The Model Y L is distinguished by a longer wheelbase and a redesigned interior layout, offering seats for up to six passengers, including a pair of captain’s chairs in the second row. Data from a regulatory filing indicates that the vehicle utilizes an 82.0-kWh lithium-ion battery supplied by LG Energy Solution. Tesla has registered its new model with the China Ministry of Industry and Information Technology (MIIT), making it eligible for new energy vehicle purchase tax exemptions. This could strengthen Tesla’s standing in the family-oriented electric SUV segment.

What Are Tesla’s Expectations for the Market?

With production lines for the existing Model Y already in place at Gigafactory Shanghai, scaling up the Model Y L may offer efficiency advantages. This could help Tesla meet rising demand for three-row SUVs at a relatively lower cost than introducing an entirely new model line. A Tesla spokesperson stated,

“We are always working to diversify our product portfolio to respond to customer needs.”

Expanding capacity for the Model Y L may support Tesla’s broader strategy to target new customer segments within China and possibly other markets.

Could Model Y L Suit Tesla’s Robotaxi Plans?

Industry analysts have noted that the Model Y L’s spacious layout and premium seating could align with Tesla’s ambitions for future Robotaxi services. Enhanced comfort for passengers, coupled with Tesla’s battery technology, may position this vehicle as a candidate for autonomous ride-hailing applications. A senior engineer from the company commented,

“Adapting our existing manufacturing capabilities allows us to be flexible in meeting transportation trends.”

This adaptability could be important as Tesla continues to explore new business models.

The Model Y L’s launch at Gigafactory Shanghai shifts the focus from incremental updates to substantial expansion, signaling Tesla’s move to diversify its appeal among larger families and ride-sharing operators. Observing Tesla’s response to regulatory and consumer feedback, it becomes clear that integration with current manufacturing lines provided cost and time savings, potentially accelerating delivery to consumers who seek multi-passenger options. The eligibility for tax incentives in China could drive strong interest locally, while future global rollout remains uncertain. For prospective buyers, the Model Y L represents an option between the Model Y and the more expensive Model X, especially for those valuing a three-row configuration. Monitoring battery performance, ride comfort, and consumer acceptance in coming months will be important for gauging Tesla’s success in this segment.

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Samantha Reed
By Samantha Reed
Samantha Reed is a 40-year-old, New York-based technology and popular science editor with a degree in journalism. After beginning her career at various media outlets, her passion and area of expertise led her to a significant position at Newslinker. Specializing in tracking the latest developments in the world of technology and science, Samantha excels at presenting complex subjects in a clear and understandable manner to her readers. Through her work at Newslinker, she enlightens a knowledge-thirsty audience, highlighting the role of technology and science in our lives.
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