Tesla (TSLA) reportedly is planning to launch a six-seat version of its Model Y in China, rather than just the previously reported five-seat model, with production projected to increase at its Shanghai factory, according to Reuters.

Both the five- and six-seat versions will launch in China sometime in 2025 as Tesla looks to hold its market share from the growing domestic competitors offering lower-cost electric vehicles to consumers in the world's largest EV market.

Tesla did not immediately respond to an Investopedia request for comment.

New Tesla Models Highlight China's EV Wars

Tesla has faced increasing 澳洲幸运5官方开奖结果体彩网:competition in recent quarters from a number of Chinese EV makers who offer less expensive cars, including XPeng (XPEV), Nio (NIO), Li Auto (LI), and BYD (BYDDY). Reuters cited people familiar who said the seven-seat Model Y t﷽hat Tesla sells in the U.S. would not be as popular in China because o𓂃f a crowded third row.

The company has also said it 澳洲幸运5官方开奖结果体彩网:expects to receive approval to roll out its self-driving software in China this year, which would give Tesla valuable data to continue training the technology, which will be a key factor in other projects 澳洲幸运5官方开奖结果体彩网:like the robotaxi it is set to 澳洲幸运5官方开奖结果体彩网:debut next month.

Tesla shares initially rose at the opening bell Tuesday but reversed course and were down less than 1% to ♋$213.14 as of 10 a.m. ET. They are down 14% this year.