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 listening today. I really do appreciate your
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