1 00:00:01,960 --> 00:00:04,520 Hey everybody. Welcome back to the Elon Musk 2 00:00:04,520 --> 00:00:07,120 Podcast. This is a show where we discuss 3 00:00:07,320 --> 00:00:11,520 the critical crossroads, the Shape, SpaceX, Tesla X, The 4 00:00:11,520 --> 00:00:15,600 Boring Company, and Neurolink. I'm your host, Will Walden. 5 00:00:15,640 --> 00:00:19,520 Tesla has already started delivering its new Model YL in 6 00:00:19,520 --> 00:00:23,000 China and the results speak for themselves. 7 00:00:23,360 --> 00:00:28,000 Orders have surged since the three row, six seat version open 8 00:00:28,000 --> 00:00:31,360 for purchase in early June, with deliveries beginning in mid 9 00:00:31,440 --> 00:00:34,000 August. Now the early demand confirms 10 00:00:34,000 --> 00:00:36,360 something Tesla has long tried to prove. 11 00:00:36,840 --> 00:00:41,480 A stretched family sized SUV that undercuts the price of a 12 00:00:41,480 --> 00:00:45,160 Model X can still generate serious volume. 13 00:00:46,360 --> 00:00:51,240 The new Model YL measures 201.4 inches long, which makes it 14 00:00:51,480 --> 00:00:55,760 about 7.8 inches longer than the standard Model Y. 15 00:00:56,200 --> 00:01:00,120 And Tesla didn't just tack on length to the rear and 16 00:01:00,120 --> 00:01:03,920 redesigned the body to include a stretched wheelbase any more 17 00:01:03,920 --> 00:01:07,320 spacious 3rd row. That's what gives this version 18 00:01:07,320 --> 00:01:12,000 real utility for Chinese families looking for a premium 19 00:01:12,160 --> 00:01:15,120 EV that doesn't hit Model X territory in price. 20 00:01:15,600 --> 00:01:20,640 Tesla lists the Model YL starting at RMB3O9900 or around 21 00:01:20,640 --> 00:01:25,800 $42,000 USD, which is almost half the cost of a Model X in 22 00:01:25,800 --> 00:01:28,560 China now. Ending a third row to the Model 23 00:01:28,640 --> 00:01:30,720 Y was never going to be a small change. 24 00:01:31,040 --> 00:01:34,440 Tesla had to rework the chassis and rear architecture to 25 00:01:34,440 --> 00:01:38,000 accommodate 2 full size seats without cramping the second row. 26 00:01:38,480 --> 00:01:41,960 Buyers in China now get a full 6C configuration with 27 00:01:41,960 --> 00:01:46,160 independent 2nd row captain's chairs and a fold flat 3rd row. 28 00:01:46,160 --> 00:01:50,280 Now, that set up not only adds flexibility, but turns the Model 29 00:01:50,280 --> 00:01:54,040 Y into a more direct competitor to Toyota's Highlander Hybrid, 30 00:01:54,280 --> 00:01:59,480 BUI DS Tang, and Lee Auto's L7, all of which already offer three 31 00:01:59,480 --> 00:02:02,200 rows. Now, Tesla made the Model YL 32 00:02:02,240 --> 00:02:05,360 exclusively at Gigafactory Shanghai, which continues to 33 00:02:05,360 --> 00:02:08,400 operate at Tesla's highest output plant globally. 34 00:02:09,000 --> 00:02:12,320 By localizing both production and supply chain, Tesla avoided 35 00:02:12,320 --> 00:02:16,240 the delays and price markups that often come with US built 36 00:02:16,240 --> 00:02:20,560 EVs sold into China. That move also allows the 37 00:02:20,560 --> 00:02:23,800 company to price the vehicle aggressively and respond to 38 00:02:23,800 --> 00:02:27,520 local trends faster. And for example, Chinese buyers 39 00:02:27,520 --> 00:02:30,880 increasingly want larger vehicles to support family 40 00:02:30,880 --> 00:02:35,120 travel, multi generational living and private driver use. 41 00:02:35,440 --> 00:02:39,640 Model YL hits all three of those, and early sales have 42 00:02:39,640 --> 00:02:43,280 already validated that approach. Reports out of China point to 43 00:02:43,320 --> 00:02:46,920 incredible demand, with some stores seeing their Model YL 44 00:02:46,920 --> 00:02:50,080 demo vehicles booked solid for test drives in the first week 45 00:02:50,080 --> 00:02:52,920 after launch. Many buyers placed deposits 46 00:02:52,920 --> 00:02:56,760 immediately after seeing the car, and Tesla's sales staff in 47 00:02:56,760 --> 00:03:00,760 multiple regions reportedly ran short of showroom stock within 48 00:03:00,760 --> 00:03:03,480 days. And Tesla hasn't released 49 00:03:03,480 --> 00:03:06,800 official numbers yet, but based on shipping reports, early 50 00:03:06,800 --> 00:03:10,120 deliveries crossed into thousands before the end of 51 00:03:10,120 --> 00:03:13,320 August. This isn't Tesla's first attempt 52 00:03:13,360 --> 00:03:16,640 at a three row Model Y, though. In the US, the company had 53 00:03:16,640 --> 00:03:20,600 launched A7 seat configuration back in 2021, but it packed a 54 00:03:20,600 --> 00:03:24,800 third row tightly and it's a bench that most buyers ignored. 55 00:03:25,240 --> 00:03:28,120 The version didn't gain much traction and remains A rarely 56 00:03:28,120 --> 00:03:31,160 seen configuration in the Chinese market. 57 00:03:31,160 --> 00:03:35,320 Model YL feels like a complete rethink or rebuild, with Tesla 58 00:03:35,320 --> 00:03:38,560 leaning into comfort and space instead of just cramming extra 59 00:03:38,560 --> 00:03:40,640 seats into the existing footprint. 60 00:03:41,440 --> 00:03:43,040 Now the difference isn't just comfort. 61 00:03:43,040 --> 00:03:48,080 Though it has a market position now, the Model X remains Tesla's 62 00:03:48,080 --> 00:03:53,280 flagship SUV. It's about RMB 680-4900 in China 63 00:03:53,280 --> 00:03:57,200 caters to a different bracket of consumer The Model YL sits 64 00:03:57,200 --> 00:04:00,160 closer to the mainstream, pulling in families who want 65 00:04:00,160 --> 00:04:04,000 Tesla's tech and brand but need more practicality than the 66 00:04:04,000 --> 00:04:08,360 regular Y offers. That move can help Tesla compete 67 00:04:08,360 --> 00:04:11,800 directly with China's expanding class of EV startups, building 68 00:04:11,800 --> 00:04:14,120 large format SUV's for domestic buyers. 69 00:04:14,560 --> 00:04:16,360 Now. This rollout also double S as a 70 00:04:16,360 --> 00:04:20,399 quiet test of Tesla's ability to localize products for specific 71 00:04:20,399 --> 00:04:23,120 regions. CEO Elon Musk has often said 72 00:04:23,120 --> 00:04:27,200 that Tesla prefers to simplify its global lineup, but the Model 73 00:04:27,200 --> 00:04:29,840 YL suggests that the company is willing to tweak a little bit, 74 00:04:30,320 --> 00:04:34,760 and the strategy is clear when they have the demand. 75 00:04:34,760 --> 00:04:39,080 It's not clear, though, if Tesla plans to export the Model YL to 76 00:04:39,080 --> 00:04:42,240 other markets, though nothing stops it from doing so later if 77 00:04:42,240 --> 00:04:44,000 demand picks up outside of China. 78 00:04:44,760 --> 00:04:46,640 There's also manufacturing going on here. 79 00:04:47,200 --> 00:04:50,800 Gigafactory Shanghai built the Model YL alongside the standard 80 00:04:50,800 --> 00:04:54,720 Model Y, using the same casting and assembly lines with minimal 81 00:04:54,720 --> 00:04:57,280 disruption. That level of efficiency means 82 00:04:57,280 --> 00:05:00,960 Tesla can scale the Model YL production volume quickly 83 00:05:01,120 --> 00:05:02,920 without slowing down its current output. 84 00:05:03,320 --> 00:05:06,320 It's the kind of flexibility that Tesla has built its margin 85 00:05:06,320 --> 00:05:09,480 story around. It's the kind of move legacy 86 00:05:09,480 --> 00:05:11,600 automakers still struggle to pull off. 87 00:05:11,920 --> 00:05:15,040 And at a time when Chinese EV makers are flooding the domestic 88 00:05:15,040 --> 00:05:18,960 market with premium tech heavy options Test found a way to make 89 00:05:18,960 --> 00:05:21,560 an old product feel new again. They upgraded it. 90 00:05:21,920 --> 00:05:26,000 The Model YL doesn't just carry any major drivetrain or software 91 00:05:26,000 --> 00:05:29,480 changes. The packaging shift alone was 92 00:05:29,480 --> 00:05:31,360 enough to reboot interest in the car. 93 00:05:31,360 --> 00:05:35,720 That's kind of stagnant. It's been on sale for years and 94 00:05:35,720 --> 00:05:39,040 China is kind of bored of it. They didn't overthink it, 95 00:05:39,040 --> 00:05:42,040 though. They'd stretched it, added rear 96 00:05:42,040 --> 00:05:43,720 seats in the back and priced it right. 97 00:05:44,440 --> 00:05:47,840 It was enough to open up a new chapter of the Model Y in China, 98 00:05:48,560 --> 00:05:50,560 and we're going to see how the sales go over the next six 99 00:05:50,560 --> 00:05:52,760 months. We'll be reporting on that for 100 00:05:52,760 --> 00:06:01,080 you when the new stats come out. Hey, thank you so much for 101 00:06:01,080 --> 00:06:03,280 listening today. I really do appreciate your 102 00:06:03,280 --> 00:06:04,840 support. 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