Hey everybody. Welcome back to the Elon Musk
Podcast. This is a show where we discuss
the critical crossroads, the Shape, SpaceX, Tesla X, The
Boring Company, and Neurolink. I'm your host, Will Walden.
Tesla has already started delivering its new Model YL in
China and the results speak for themselves.
Orders have surged since the three row, six seat version open
for purchase in early June, with deliveries beginning in mid
August. Now the early demand confirms
something Tesla has long tried to prove.
A stretched family sized SUV that undercuts the price of a
Model X can still generate serious volume.
The new Model YL measures 201.4 inches long, which makes it
about 7.8 inches longer than the standard Model Y.
And Tesla didn't just tack on length to the rear and
redesigned the body to include a stretched wheelbase any more
spacious 3rd row. That's what gives this version
real utility for Chinese families looking for a premium
EV that doesn't hit Model X territory in price.
Tesla lists the Model YL starting at RMB3O9900 or around
$42,000 USD, which is almost half the cost of a Model X in
China now. Ending a third row to the Model
Y was never going to be a small change.
Tesla had to rework the chassis and rear architecture to
accommodate 2 full size seats without cramping the second row.
Buyers in China now get a full 6C configuration with
independent 2nd row captain's chairs and a fold flat 3rd row.
Now, that set up not only adds flexibility, but turns the Model
Y into a more direct competitor to Toyota's Highlander Hybrid,
BUI DS Tang, and Lee Auto's L7, all of which already offer three
rows. Now, Tesla made the Model YL
exclusively at Gigafactory Shanghai, which continues to
operate at Tesla's highest output plant globally.
By localizing both production and supply chain, Tesla avoided
the delays and price markups that often come with US built
EVs sold into China. That move also allows the
company to price the vehicle aggressively and respond to
local trends faster. And for example, Chinese buyers
increasingly want larger vehicles to support family
travel, multi generational living and private driver use.
Model YL hits all three of those, and early sales have
already validated that approach. Reports out of China point to
incredible demand, with some stores seeing their Model YL
demo vehicles booked solid for test drives in the first week
after launch. Many buyers placed deposits
immediately after seeing the car, and Tesla's sales staff in
multiple regions reportedly ran short of showroom stock within
days. And Tesla hasn't released
official numbers yet, but based on shipping reports, early
deliveries crossed into thousands before the end of
August. This isn't Tesla's first attempt
at a three row Model Y, though. In the US, the company had
launched A7 seat configuration back in 2021, but it packed a
third row tightly and it's a bench that most buyers ignored.
The version didn't gain much traction and remains A rarely
seen configuration in the Chinese market.
Model YL feels like a complete rethink or rebuild, with Tesla
leaning into comfort and space instead of just cramming extra
seats into the existing footprint.
Now the difference isn't just comfort.
Though it has a market position now, the Model X remains Tesla's
flagship SUV. It's about RMB 680-4900 in China
caters to a different bracket of consumer The Model YL sits
closer to the mainstream, pulling in families who want
Tesla's tech and brand but need more practicality than the
regular Y offers. That move can help Tesla compete
directly with China's expanding class of EV startups, building
large format SUV's for domestic buyers.
Now. This rollout also double S as a
quiet test of Tesla's ability to localize products for specific
regions. CEO Elon Musk has often said
that Tesla prefers to simplify its global lineup, but the Model
YL suggests that the company is willing to tweak a little bit,
and the strategy is clear when they have the demand.
It's not clear, though, if Tesla plans to export the Model YL to
other markets, though nothing stops it from doing so later if
demand picks up outside of China.
There's also manufacturing going on here.
Gigafactory Shanghai built the Model YL alongside the standard
Model Y, using the same casting and assembly lines with minimal
disruption. That level of efficiency means
Tesla can scale the Model YL production volume quickly
without slowing down its current output.
It's the kind of flexibility that Tesla has built its margin
story around. It's the kind of move legacy
automakers still struggle to pull off.
And at a time when Chinese EV makers are flooding the domestic
market with premium tech heavy options Test found a way to make
an old product feel new again. They upgraded it.
The Model YL doesn't just carry any major drivetrain or software
changes. The packaging shift alone was
enough to reboot interest in the car.
That's kind of stagnant. It's been on sale for years and
China is kind of bored of it. They didn't overthink it,
though. They'd stretched it, added rear
seats in the back and priced it right.
It was enough to open up a new chapter of the Model Y in China,
and we're going to see how the sales go over the next six
months. We'll be reporting on that for
you when the new stats come out. Hey, thank you so much for
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