Reports from industry watchers in China have suggested that the Tesla Model Y L has started mass production at Gigafactory Shanghai. The vehicle is expected to be a larger version of the best-selling Model Y crossover, offering three rows and six seats thanks to a longer wheelbase.

Tesla Model Y L Production Rumors

Reports about the new Model Y variant’s alleged milestone were initially shared on Weibo, with some industry watchers stating that the vehicle has already started mass production. Tesla China is reportedly surveying which of its domestic stores would have the first display units of the six-seat Model Y. 

The Model Y L’s steady march towards production was evident this past week, with recent reports indicating that the vehicle’s key specs have already been listed in the China Ministry of Industry and Information Technology’s (MIIT) latest batch of new energy vehicle models that are eligible for vehicle purchase tax exemptions.

As per the MIIT’s list, the Model Y L will be a dual motor vehicle that is equipped with an 82.0-kWh lithium-ion battery from LG Energy Solution. The vehicle will feature six seats with two captain seats on the second row, as well as a CLTC range of 751 km. 

Tesla Model Y L Potential

The potential of the Model Y L is vast, considering that it is produced in the existing Model Y lines of Tesla’s factories. This should slash new vehicle tooling costs and potential ramp-up issues. Three-row SUVs also command a pretty notable market that has mostly only been accessed by the more expensive Model X. With the Model Y L’s lower price, Tesla could become more competitive in the three-row SUV segment.

As noted by longtime Tesla owner and investor @_SFTahoe, the Model Y L could also become a more premium option for the company’s Robotaxi business, thanks to its second row captain seats and spacious interior. The expansion of Model Y L Robotaxis should also be impressive considering Tesla’s mastery of mass manufacturing techniques. 

Tesla India is reportedly partnering with Tata Group companies to establish a local supply chain and domestic parts production.

Tesla India has allegedly partnered with a few Tata Group companies, including Tata AutoComp, Tata Consultancy Services, Tata Technologies, and Tata Electronics. Tesla and the Tata Group companies are reportedly discussing the possibility of establishing facilities in India, near Tata Group’s manufacturing factories.

“Tesla is, in a way, readying the supplier base in India. We are very sure that once Tesla starts manufacturing here, Indian suppliers will benefit from sourcing opportunities,” an industry source told the Economic Times.

Tesla and Tata Group are supposedly discussing the possibility of developing and producing components like castings, forgings, electronics, and fabrication items. A few sources have also hinted that Tesla may intend to procure supplies from companies outside China and Taiwan, like wiring harnesses, electric motors, gearboxes, and castings.

Tesla wouldn’t be the first company to distance itself from Chinese suppliers. Earlier this year, for example, Panasonic Energy sought to reduce its reliance on Chinese sources, specifically for electric vehicles (EVs) produced in the United States.

Tesla may also be forming stronger ties within India for tax advantages and financial incentives. Last year, the Indian government was close to finalizing a new import tax policy that would encourage foreign EV automakers to invest in the country in exchange for specific tax advantages and incentives. The American EV manufacturer was supposedly set to invest $2 billion in a new plant and buy $15 billion worth of auto parts in India if the new policy would reduce Tesla’s import duties.

India’s strict rules on imported vehicles have always been a point of strain for Tesla’s entry into the country. It has a 60% import duty on vehicles below $40,000 and a 100% rate on vehicles above $40,000. U.S. President Donald Trump and his administration want India to completely eliminate or significantly reduce car import tariffs.

Tesla’s Model 3 “Highland” has been speculated upon for nearly a year after being brought to light in late 2022 by a leaked report. More details continue to pour out, and rumors of a “major” exterior redesign and a slew of modern improvements are set to bring the automaker’s first mass-market vehicle out of the late 2010s and into 2023.

After being brought to light in late 2022, more details about “Highland” have been revealed through various sources. Teslarati has revealed that Tesla has been working on the project for a year now, despite it only being known about since October.

Periodic sightings of the “Highland” Model 3 have shown slightly redefined front ends, new wheels, new taillights, and other improvements cosmetically. However, initial reports had pushed for more attention to be paid to infotainment.

Tesla Model 3 Highland design details and upgrades confirmed

Teslascope is now indicating that Tesla is planning to implement “dozens” of technological advancements that will update the Model 3 significantly. And although Tesla “refreshed” the Model 3 just two years ago, these changes were mostly to update the look without changing the overall design. One example of this is the “chrome delete” look it now equips.

The Model 3 will now feature steer-by-wire, a system that relies on digital signals to adjust the driving experience and remove anything from vibrations to sudden bumps that can be caused by things like potholes.

Tesla will also rumoredly use matrix LED headlights across the entire Model 3 lineup and also use RGB ambient lights for a more modern feel.

Tesla is incorporating dozens of technological advancements within Highland, including, for the first time, steer-by-wire Yoke and steering wheels.

Other additions include matrix LEDs on all trims & redesigned RGB ambient lights, providing a more modern feel for all passengers.

— Teslascope (@teslascope) June 22, 2023

Tesla is also looking to be more sustainable with its powertrains for the Model 3 through the use of recycled materials. This a detail that will reportedly spread through the Model 3 program and extend to the Model Y.

It seems Tesla’s biggest goal with the Model 3 “Highland” revamp was to give owners what they wanted, as suggestions were routinely received by CEO Elon Musk on Twitter.

But there’s also an improvement in the quality of parts, which includes upgraded cameras that have been seen on the Hardware 4-equipped Model S, Model X, and Model Y vehicles. These improved quality cameras are set to help Tesla’s self-driving efforts, and many owners have reported the new installations are obviously of higher quality than the old iterations.

Based on those working closely on the Highland project, we’ve been told that Highland will not only include the upgraded cameras we’ve seen on HW4-equipped vehicles but will be one of the first models to incorporate a new front fascia.

Yes, that includes a new bumper camera. ?

— Teslascope (@teslascope) June 22, 2023

Routine sightings of the Model 3 Highland project have continued through the past few months, and hopefully, we’ll be able to see a less-covered version of the car moving forward.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.