05:48 AM EDT, 09/03/2024 (MT Newswires) -- Tesla (TSLA) plans to produce a six-seat variant of its Model Y car in China from late 2025, Reuters reported Tuesday citing two people with direct knowledge of the matter.

One of the sources told Reuters that the company has asked its suppliers to prepare for a double-digit increase of Model Y output at its Shanghai factory, although it was unclear how Tesla will raise production.

The second person said that Tesla has been revamping Model Y under a project dubbed "Juniper", which will seat five and launch in early 2025 rather than this year as initially planned, according to the report.

Tesla's seven-seater Model Y in the US has a cramped third row which will make it unpopular in China, the sources told Reuters.

Tesla did not immediately respond to MT Newswires' request for comment on the matter.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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