• The Tesla Model Y L starts at RMB 339,000 ($47,180) in China, significantly lower than the about RMB 400,000 expected price previously reported by many local media outlets.
• The Model Y L is expected to begin deliveries in September, potentially boosting Tesla's sales in China and intensifying competition in the six-seat SUV segment.

Tesla has officially launched the Model Y L in China, which is set to intensify competition in the six-seat SUV (sport utility vehicle) segment.

The Model Y L starts at RMB 339,000 ($47,180) in China, significantly lower than the about RMB 400,000 expected price previously reported by many local media outlets.

Chinese customers who purchase the six-seat Model Y variant are expected to receive delivery in September, according to information on Tesla China's website.

The variant is expected to boost Tesla's sales in the world's largest EV market and bring greater competition to local rivals including Nio Inc (NYSE: NIO) and Li Auto (NASDAQ: LI) in the six-seat SUV segment.

Longer range, more space

The launch of the Model Y L brings the number of available variants of the Model Y in China to three, making it the most expensive, longest-range, and largest model in the SUV lineup.

The five-seat Model Y is currently available in China in two variants: a rear-wheel-drive version starting at RMB 263,500, and a long-range all-wheel-drive version starting at RMB 313,500.

The six-seat Model Y L is priced RMB 25,500, or 8.13 percent, higher than the five-seat Model Y long range version.

However, thanks to the adoption of a larger-capacity ternary lithium battery pack from South Korea's LG Energy Solution (LGES) with a capacity of 82.0 kWh, the Model Y L offers a CLTC range of 751 kilometers, 1 kilometer more than the 750-kilometer range of the five-seat Model Y long range version.

The five-seat Model Y rear-wheel drive version is equipped with a 62.5-kWh lithium iron phosphate (LFP) battery pack from CATL (SHE: 300750), offering a CLTC range of 593 kilometers.

The five-seat Model Y long range is equipped with a 78.4-kWh battery pack from LGES.

The Model Y L can accelerate from 0 to 100 kilometers per hour in 4.5 seconds. In comparison, the entry-level Model Y accelerates from 0 to 100 kilometers per hour in 5.9 seconds, while the long range AWD accelerates from 0 to 100 kilometers per hour in 4.3 seconds.

The six-seat SUV measures 4,976 mm in length, 1,920 mm in width, and 1,668 mm in height, with a wheelbase of 3,040 mm.

For comparison, the five-seat Model Y measures 4,797 mm in length, 1,920 mm in width, and 1,624 mm in height, with a wheelbase of 2,890 mm.

Tesla claimed that the Model Y L has up to 2,539 liters of storage space, enough to hold luggage for the entire family.

More features

Tesla said that the Model Y L has a lightweight body, weighing 2,088 kilograms, with energy consumption of only 12.8 kWh per 100 kilometers.

It has a new gold paint option, new 19-inch wheels, and a drag coefficient of Cd 0.216.

The second and third row seats of the Model Y L can be independently folded down and are electrically controlled. The second-row seats are equipped with electric armrests.

The front two rows of seats have ventilation, and all seats have seat heating.

The Model Y L has an improved Tesla Audio sound system with 18 Tesla-designed speakers and a subwoofer.

Customers in China who purchase this Model Y variant can enjoy 3 years of 0 percent financing with a down payment of RMB 99,900, or 5 years of low-interest financing with a down payment of RMB 45,900.

A RMB 8,000 discount on optional paint finishes is currently available for this six-seat variant.

Implications

The launch of the Model Y L comes at a time when the Model Y is facing challenges in China.

Since deliveries of the Model Y produced at the Shanghai factory began in January 2021, the SUV has maintained strong deliveries in most months.

This year, however, the Tesla SUV's performance in China has weakened, with retail sales declining year-on-year in five of the first seven months, according to data compiled by CnEVPost.

This has led to a decline in cumulative sales of the Model Y in China so far this year. From January to July, the SUV's retail sales in China totaled 202,257 units, down 17.15 percent year-on-year.

The Model Y L is expected to help Tesla boost sales in the world's largest EV market, given its reasonable pricing and Chinese consumers' preference for spacious SUVs.

At the same time, the Model Y L will intensify competition in China's six-seat electric SUV market and even the entire SUV market.

On July 16, the day Tesla first mentioned the Model Y L, Nio founder, chairman, and CEO William Li commented on Weibo that the era of large-space SUVs going purely electric has arrived.

Li Auto founder, chairman, and CEO Li Xiang also said on Weibo that the Model Y L is a six-seat pure electric SUV worthy of respect.

Nio's sub-brand Onvo launched the six-seat electric SUV L90 on July 31 and began deliveries the next day. Li Auto launched the Li i8 six-seat electric SUV on July 29 and will begin deliveries on August 20.

($1 = RMB 7.1849)