New Tesla Model to Help Sales

By Douglas A. McIntyre Published Sep 3, 6:40AM EDT

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New Tesla Model to Help Sales — © Xiaolu Chu / Getty Images News via Getty Images

24/7 Wall St. Insights

Tesla Inc. (NASDAQ: TSLA | TSLA Price Prediction) is set to release a six-seat Model Y in China.
Local EV makers will soon have six-seat models as well.
Also: Discover the Next Nvidia.

Aside from the Cybertruck, the last time Tesla Inc. (NASDAQ: TSLA) released a new model was Model Y in late 2019. That is a long time based on auto industry standards. It will release a new and very different Model Y in late 2025. It will have six seats, which has become popular in the car industry in which many buyers want cars that carry extra passengers.

According to Reuters, the new vehicle will be released in China. Tesla has asked suppliers to increase production of parts needed for the vehicle. Another reason Tesla has to speed the car to market is that Chinese competitors have launched similarly configured vehicles. Reuters also points out that the current Model Y is the top-selling electric vehicle (EV) in China, with first-half sales totaling 207,800.

Tesla has to “win” in China because it is both the world’s largest car market and the largest EV market. Adoption rates of EVs in the country have outpaced those in Europe and the United States. This puts much more pressure on Tesla’s success in China.

Tesla’s major China challenge will not go away because several local companies, led by BYD, have become very successful. These Chinese companies have to count on their home market because tariffs as high as 100% block sales in the United States, Canada, and Europe.

To grow, Tesla still needs new models. It also needs to add range to its additional models and build out a larger charging station infrastructure, particularly in the United States.

As it waits for other progress, a six-seat EV will need to suffice.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.