Seven-seat version of 2025 Tesla Model Y to be built in China where Oz cars are built, but will it arrive here to tackle the Kia Sorento, Hyundai Santa Fe and Toyota Kluger

Tesla will begin producing a seven-seater Model Y in China, according to reports.

CarNewsChina is reporting that assembly will commence in October from the company’s giga factory in Shanghai, where it currently produces the Model Y and Model 3 for export to Australia.

The updated SUV is also projected to hit the European market, where it has reportedly completed the homologation process, though this information hasn’t been verified.

Model Ys for the European market are produced at the company’s new giga factory in Berlin where they avoid European-imposed tariffs on Chinese-made EVs.

Currently, Tesla only offers a seven-seater version of the Model Y on the four-wheel drive dual-motor variant in the US, which costs $2000 (about $2,943) extra.

The news comes just a month after the next-generation Model Y ‘Juniper’ was first spotted in California under heavy camouflage.

Tesla released an upgraded version of its Model 3 last year, though consumers will still have to wait until next year before they can get their hands on a face-lifted Model Y, which is well overdue.

2025 Tesla Model 3 (Image: Tom White)

All we know so far is from previously leaked images that show an LED light bar that spans the full length of the vehicle's rear, with bold Tesla lettering.

Judging by the Model 3’s update, we can assume that the Model Y will get sleeker headlights and new wheel designs as well.

An interior revamp is expected as well, including features like an improved centre screen, a new steering wheel with physical buttons, a new stereo system, and new fabric upholstery.

Aside from that, though, details are scarce. As usual, news from Tesla is shrouded in secrecy.

Earlier reports suggested a release date before the end of this year, but Elon Musk poured cold water on that over his social media platform X, where he stated “no Model Y 'refresh' is coming out this year,” in June.

2025 Tesla Model Y (Image: X/Teslaeconomics)

The Model Y hasn’t received a significant cosmetic refresh since it was first released in the US back in 2019. The move to implement a seven-seater edition is likely one to appease fans in important overseas markets.

It comes as Tesla is under increasing pressure in the EV segment to deliver some considerable changes to its vehicle range, as more competitors from China enter the market.

The same can be said for Australia, where sales of Tesla vehicles have dwindled this year, down some 21.7 per cent so far this year.

The Model 3 and Model Y still continue to lead their respective sedan and SUV segments though, selling 10,600 and 12,517 vehicles this year to date.

CarsGuide has contacted Tesla’s Australian office to confirm if and when we can expect a seven-seater variation in Australia.