Tesla plans to introduce larger and longer-range versions of its vehicles produced in Shanghai. A six-seat Model Y and an upgraded Model 3 with an 800 km driving range are expected to be delivered in September, according to industry sources.

This announcement comes as Tesla’s market share in China’s electric vehicle (EV) sector has declined.

Data from the China Passenger Car Association (CPCA) indicates that Tesla’s share dropped to 3.8% in June 2025, down from 6.9% a year earlier.

This also reflects a significant decrease from its 16% share in 2020, when the Shanghai Gigafactory began operations.

Tesla’s Shanghai facility is its largest production hub worldwide, manufacturing the fully electric Model 3 and Model Y vehicles.

Analysts suggest the updated models align with Tesla’s strategy to respond to changing consumer preferences amid increased competition from domestic EV manufacturers.

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