Tesla starts production of the three-row Model Y in China

Tesla is apparently on the verge of starting production of a new three-row version of the Model Y at the Giga Shanghai plant. According to Chinese media reports, the revised version with an extended wheelbase is set to go into production directly after the Labor Day holiday (May 1-5). This is Tesla's response to the increasing demand for family-friendly electric SUVs – and to growing competitive pressure in the Chinese market.

Three rows, more space: Model Y gets a space upgrade

The new variant of the Model Y with a third row of seats is clearly aimed at larger families or customers who need more space. According to the well-known Chinese auto blogger @胖虎Shawn, who has previously provided accurate pre-release Tesla information multiple times, the new version internally carries the codename “E80”.

The base remains the well-known Model Y – however, with an extended wheelbase to accommodate a third row of seats. This variant was not previously available in China. Currently, only the five-seat version is listed on Tesla's Chinese website – there are no indications of a 7-seater model yet.

Strategic timing: Market launch planned after the holiday

The timing is no coincidence: According to reports, Tesla intends to start production directly after the long May holiday weekend – a period when many new car sales are typically made. Tesla could thus specifically capture the buying mood of customers, especially in the booming electric SUV segment.

Tesla China: E80 now, entry-level model “E41” from 2026

In parallel, according to Reuters, Tesla is also working on a new more affordable Model Y with the internal codename “E41”, which is also set to roll off the production line at Giga Shanghai from 2026. But even now, Tesla is increasing its market presence with new models and aggressive financing offers.

Financing promotions to fuel demand

To further boost sales, Tesla is currently offering in China:

0% financing for three years with purchase by the end of April
0% financing for five years with purchase by June 30th

These promotions are likely also applicable to the new three-row Model Y – ideal for buyers looking for a lot of space but are price-sensitive.

Response to increasing competition in the home market

Despite continued strong sales figures, Tesla is facing increasing pressure from domestic manufacturers like BYD, NIO, or Li Auto in China. These often offer more affordable vehicles with more features. With the new, more spacious Model Y, Tesla is directly responding to this trend and aims to solidify its position as a premium provider in the mass market.

Conclusion
With the upcoming production start of the three-row Model Y in China, Tesla is strategically expanding its offering for family-oriented buyer groups – and is making a strong statement in the fiercely competitive Chinese EV market. The market launch in May is likely to strengthen Tesla's position and show the competition: Even in terms of space offerings, Tesla still has plans.