Six Model YLs exclusively for the Chinese market. Is Musk taking it easy on the U.S. market?

Tesla has launched a new car, but Elon Musk didn't mention it at all. This is quite abnormal.

China Launches Six-Seater New Car

As is well known, Elon Musk is a marketing master and a top influencer with over 200 million followers. For many years, he has been leveraging his personal influence and media attention to promote Tesla and other companies under his umbrella, saving hundreds of millions of dollars in advertising and marketing expenses.

Before each new car launch, Musk would surely conduct pre - heating online, being all mysterious to pique people's interest. After the product launch, he would follow up and interact with Tesla's die - hard fans to maintain the continuous popularity and encourage potential consumers to place orders.

But this time, something is amiss. Tesla China officially launched the six - seater Model YL this week. Although it's just a minor facelift, it's Tesla's cheapest six - seater family car, which is of great significance for boosting sales in the Chinese market.

Compared with the original five - seater or seven - seater Model Y, the six - seater version is slightly larger in size (18 cm longer, 4.4 cm taller, and with a 15 - cm longer wheelbase), which improves the legroom in the second and third rows and enhances the cramped riding experience in the third row of the original seven - seater version.

In addition, the Model YL also adds seat ventilation and electric armrest functions to the second row. Apart from the size and seats, there aren't significant improvements between the six - seater version and the original Model Y. The range and power remain basically the same, and the price is 10,000 yuan higher, starting at 339,000 yuan (equivalent to $47,000).

It's worth mentioning that the Model YL is Tesla's only six - seater car in China. Due to tariff issues, Tesla has stopped selling the luxury cars Model X and S in the Chinese market, and their sales in China have already been negligible.

Obviously, Tesla is eager for this six - seater Model YL to increase its market share in the highly competitive Chinese new - energy vehicle market. After all, China is the world's largest electric vehicle market and also Tesla's largest global market, accounting for nearly 40% of its sales.

The launch of this six - seater Model YL was already within market expectations. Since last summer, there have been rumors that Tesla's Shanghai factory might produce a long - wheelbase Model Y. In September last year, Reuters exclusively reported that it would be a six - seater model. At that time, Tesla China refuted the rumor, claiming it was false information.

Musk Keeps Silent

However, when Tesla launched a new car in China this time, the US headquarters didn't make any statement. The new car isn't visible on the global official website, and there's no mention of when it will be launched in other countries. Moreover, for such a significant model, Musk didn't even bother to promote it on his X platform. This is very inconsistent with his previous style.

Actually, Tesla fans and shareholders in the US have been looking forward to the Model YL for a long time. After the new car was launched in China, the parameters and pricing of the Model YL were spread on the X platform, and video clips of Chinese media's test drives of the new Model YL were also continuously circulated on the X platform, attracting the attention and envy of many US car owners.

Meanwhile, they quickly noticed Musk's silence. A Tesla fan posted a picture, reminding Musk to say something about his company's new car launch. Another blogger tried to explain that obviously Musk would wait until the international market launch before commenting. This wasn't because he forgot but because he did it deliberately.

Under this X post, Musk finally responded, but it was like a bucket of cold water poured on Tesla owners and fans in the US. "The facelift of this Model Y won't start production in the US until the end of next year. Considering the emergence of autonomous driving in the US, it may never be produced."

Even if production starts at the end of next year, it means full delivery won't be until 2027, which will be a full ten years after the Model Y was launched. The newly launched Model Y Juniper this year doesn't have a significant upgrade, and there's no six - seater option. If Tesla users want a six - seater car, they can only choose the Model X, which starts at $100,000.

It seems that potential US owners of the Tesla Model Y can only look on with envy, once again envious of the diverse choices and affordable prices in the Chinese electric vehicle market.

Has Tesla Given Up on the US Market?

Is there no demand for the six - seater Model YL in the US market? The answer is no. The cramped riding experience has always been the main complaint of Tesla Model Y owners. Due to the limited interior space, some Model Y users even complain that "the third row is too small even for a dog." If they want to enjoy a six - seater experience, they can only choose the Tesla Model X, which costs $100,000.

Just like in the Chinese market, three - row vehicles with spacious interiors and comfortable riding experiences, especially those with independent second - row seats, have always been the most popular in the US market, favored by family users and consumers who need luxury configurations.

The Toyota Sienna is a prime example. This hybrid MPV is in short supply in the US because of its fuel economy and family - friendly features. Since the pandemic, the Toyota Sienna has been in high demand: either you have to wait in line for more than a year, or you have to pay an additional few thousand dollars to pick up the car within a month.

Since Tesla's sales in the US have declined significantly and consumers are eager for a Model Y with more interior space, why doesn't Tesla launch the Model YL in the US? Moreover, Musk even claimed that it "may never be launched." Has Tesla given up on the US market?

Tesla, the global electric vehicle giant, is facing severe sales challenges. Musk doesn't mention his ambitious goal of selling 20 million vehicles annually anymore. In the second quarter, Tesla's global deliveries declined by 14%, and its automotive revenue dropped by 16%. Sales in the three major markets of China, the US, and Europe all declined, and it's difficult to stop the downward trend.

China is Tesla's largest global market, accounting for nearly 40% of its sales. According to data from the China Passenger Car Association, Tesla delivered 129,000 vehicles in China in the second quarter. However, it's facing fierce competition from domestic rivals such as BYD and Xiaomi, and its market share has been continuously declining, dropping by 12% in July.

In the past month or so, the business leaders in charge of Tesla's sales in Europe and the US have successively left. The outside world believes that they were fired by Musk because they couldn't stop the significant decline in sales. However, the decline in sales in the US and European markets is largely Musk's own responsibility.

Tesla's market slump in Europe and the US is obviously not just a problem of market competition. According to statistics from the European Automobile Manufacturers Association (ACEA), Tesla's sales in Europe plunged by 33% in the second quarter. The US market research firm Cox Automotive estimates that Tesla's deliveries in the US market decreased by more than 15% year - on - year in the second quarter of 2025.

Musk spent $300 million to support Donald Trump's re - election and publicly sided with right - wing political parties in Europe, almost severing ties with the left - leaning consumers who are Tesla's core customer group. Considering the high degree of binding between the Tesla brand and Musk personally, it's no surprise that Tesla stores in the US and Europe have been boycotted, protested against, and even violently damaged, leading to a significant decline in sales.

The US Market Worsens

Why is the six - seater Model YL exclusive to the Chinese market? It seems that Musk believes that ensuring sales in the Chinese market is Tesla's top priority at present. China is not only the world's largest electric vehicle market but also maintains a stable and high - speed growth momentum.

The six - seater Model YL can help Tesla increase sales in China and attract new customers in the competition with domestic rivals such as the Li Auto L8 and the AITO M8. After all, the Chinese market is relatively a pure product competition, and Chinese consumers aren't interested in Musk's political stance in Europe and the US.

However, in the US market, the six - seater Model YL may not bring obvious improvements to Tesla. The latest Gallup poll shows that 61% of US citizens have a negative attitude towards Musk. This poll result is consistent with a previous poll by Silver Bulletin: as many as 57.4% of the public have a negative attitude towards Musk.

To make matters worse, the Trump administration, which Musk spent $300 million to support, dropped a bombshell on the US electric vehicle market. The "Great American Act" forcibly passed by the Trump administration completely abolished the subsidies for new - energy vehicles. The $7,500 federal tax credit for each new car purchase will end at the end of September.

This means that now is the last golden period for potential US electric vehicle users to buy a car. After October, they'll have to pay an additional $7,500 to buy an electric vehicle. It's imaginable that US electric vehicle sales may rebound in the third quarter and then decline significantly in the fourth quarter.

The sales of electric vehicles in the US have shown a slowdown in growth in the first half of this year. Analysts predict that after the tax - credit subsidy is cancelled in the fourth quarter, the US electric vehicle sales may "collapse," and the penetration rate may drop from the current 7 - 8% to a lower level. In contrast, the proportion of pure - electric vehicles in new - car sales in China has exceeded 45% in the first half of this year.

The Trump administration's blow to Tesla doesn't stop there. It also means billions of dollars in lost revenue. The "Great American Act" cancelled the original carbon - emission credit trading system, which means that traditional automakers no longer need to buy credits from electric vehicle companies like Tesla because of their slow pace in new - energy transformation.

For many years, carbon - emission credit sales, which have no cost at all, have been an important source of revenue for Tesla. Gordon Johnson, an analyst at the market research firm GLJ Research, said bluntly that this is the reason why Tesla has survived until now. In the past decade, Tesla has earned $11.8 billion from selling carbon - emission credits, ensuring its survival during long - term loss - making operations.

Now that the Trump administration has introduced the "Great American Act," Tesla has completely lost this source of revenue. This is the direct reason why Musk suddenly fell out with President Trump and even publicly quarreled with him. However, it's well - known that Trump and the Republican Party have always opposed subsidizing the new - energy industry.

Focus on Developing Autonomous Driving

Musk didn't explain in detail on X the direct relationship between the expansion of autonomous driving in the US and whether the Model YL will be launched in the US. But now, his focus on Tesla's US business has almost completely shifted to expanding the Robotaxi autonomous driving service.

In the past two months, Tesla has been conducting a trial operation of the Robotaxi service in Austin, the capital of Texas, where its headquarters is located. Model Ys equipped with FSD technology are used to provide taxi services. According to the current plan, Tesla's fully autonomous vehicle without a steering wheel, the CyberCab, won't start mass - production until next year. However, the outside world expects that Tesla may delay the plan until 2027 as it has done in the past.

For at least the next two years, Tesla's autonomous driving service will rely entirely on the Model Y equipped with FSD technology. It should be emphasized that Tesla's Robotaxi currently has a clear difference from Google's Waymo: there's a safety operator sitting in the front - passenger seat, ready to take over at any time. It only operates at specific times and in specific areas and is only available to a small number of invited Tesla users.

However, during the analyst conference call after Tesla's earnings report, facing the poor financial report with a significant decline in sales, Musk "made a bold claim" that he plans to cover "half of the US population" with the Robotaxi service by the end of the year. He obviously hopes to divert investors' attention and make them believe that Tesla's future value will be fully supported by autonomous driving and artificial intelligence, ignoring the dismal sales decline.

If following the pace of Google and Cruise's deployment of autonomous driving, Musk's plan is almost an impossible task. Just applying for an autonomous - taxi service in California requires years of testing and approval.

But Musk has his own plan: recently, Tesla announced the launch of a ride - hailing service in the San Francisco Bay Area, but the cars don't have the Robotaxi logo, and the safety operator sits in the driver's seat. In fact, Tesla bypassed the autonomous - driving road - use regulatory approval in California through a car - rental service.

What might be bothering Musk is that Tesla has recently faced litigation challenges and heavy blows in the marketing of its "autonomous driving" technology. Last week, in a fatal car accident involving a 2019 Model 3 in Florida, Tesla was found to be secondarily responsible but had to pay more than $200 million in punitive damages for misleading marketing.

Just this week, the US District Court in San Francisco ruled that Tesla owners in the US can file a class - action lawsuit against Tesla's promotion of its autonomous driving features since 20