Tesla plans larger Model Y L launch in U.S. by late 2026

Tesla is moving forward with plans to introduce its stretched Model Y L to American buyers. The vehicle, already popular in China, is expected to reach U.S. showrooms before the end of the year.

Recent reports indicate production of the Model Y L will start at Gigafactory Texas in September. Analyst Sam Fiorani of AutoForecast Solutions said China-built units will not be supplied to the U.S. market.

The Model Y L features a longer wheelbase and six-seat layout with captain’s chairs. It measures about 4,969–4,976 mm in length and 3,040 mm in wheelbase, compared with the standard Model Y.

Tesla CEO Elon Musk had previously suggested the model could arrive in late 2026. Several camouflaged examples have already been seen on U.S. roads.

The move follows the discontinuation of the Model X earlier this year and comes amid strong demand from U.S. buyers seeking more interior space.

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Photorealistic rendering of Tesla's upcoming compact SUV on a Chinese factory line with Elon Musk approving the design.
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Tesla developing compact affordable SUV amid strategy shift and sales slump, Reuters reports

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Tesla is developing a new compact electric SUV priced below the $36,990 Model 3 and measuring 168 inches (4.3 meters) long—shorter than the Model 3 (185.8 inches) and Model Y (188.7 inches)—according to Reuters citing four anonymous supplier sources. The all-new design awaits CEO Elon Musk's production approval and may launch first in China before expanding to U.S. and German factories, signaling a pivot back to core vehicles after a focus on robotaxis and humanoid robots.

Tesla held an unveiling event for its Model Y L in India on Monday. Orders for the vehicle are now open, with deliveries scheduled to begin this summer. The Model Y L Premium AWD starts at 61,99,000 Indian Rupees, approximately $66,600 USD.

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Tesla’s Model Y led foreign vehicle registrations in Japan for May 2026. The achievement marks a first for the brand in the import segment.

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