Tesla is rumored to begin production of a three-row Model Y in China next month to support sales of the crossover. According to auto blogger @胖虎Shawn, who has been closely tracking Tesla’s developments, production of a three-row version of the Model Y with an extended wheelbase is expected to start after the upcoming Labor Day holiday in China.
The upcoming Labor Day holiday in China is scheduled for May 1-5. This new model, internally codenamed E80, is said to be in the works at Tesla’s Shanghai plant, which is the company’s largest factory in the world with an annual production capacity of about one million units. The plant currently produces the Model 3 sedan and the Model Y.
While it’s not confirmed if the E80 will be the three-row Model Y, there are speculations that it might be. Reuters previously reported that Tesla’s “lower-priced Model Y,” internally codenamed “E41,” is set to begin production at the Shanghai plant in 2026. The facelifted five-seat Model Y was launched in China earlier this year, with deliveries starting in February.
Tesla’s China website offers seating layout options for the facelifted Model Y, hinting at the possibility of a three-row seating option in the future. The Model Y has been a popular choice among EV enthusiasts in China, although its appeal has faced competition from local manufacturers.
To further boost sales, Tesla has introduced financing incentives for the Model Y in China. Last week, the company began offering a five-year, zero-interest financing plan for the Model Y, valid until June 30. This promotion follows a similar three-year zero-interest financing offer that was available until the end of April.
In March, Tesla sold 74,127 vehicles in China’s domestic market, marking an 18.80 percent increase compared to the same month last year. The first-quarter retail sales in China totaled 134,607 units, showing a 1.65 percent growth from the previous year.
As Tesla gears up for the production of the three-row Model Y in China, the competition in the EV market is expected to intensify. With the growing demand for electric vehicles, Tesla is making strategic moves to maintain its position as a leading player in the industry.