A Bigger Model Y Heads West

Tesla Inc. (TSLA) is reportedly eyeing a European launch for its Model Y L, a six-seater variant that's been a hit in China but hasn't ventured beyond its borders until now. According to German news outlet Ecomento, the EU has given Tesla the regulatory thumbs-up to bring the vehicle to the region, potentially as soon as the first half of 2026.

The European version might come with some upgrades, too. Tesla is considering a beefier battery pack with 4,600 cells instead of the 4,416 cells currently used in the Chinese model. That translates to roughly 423 miles of range under the WLTP testing standard, which is the metric European buyers actually care about. The Europe-bound Model Y L would also feature a longer wheelbase, making it roomier than the standard Model Y already sold in the region.

In China, where the Model Y L retails for $47,184, the vehicle comes equipped with an 84 kWh battery, all-wheel drive, 19-inch wheels, and a claimed range of over 467 miles under the CLTC standard. That's a China-specific testing protocol, though, and it's generally more generous than WLTP measurements, which explains why the European range estimate looks more conservative.

Why Europe, Why Now?

The timing is interesting. Tesla's European sales haven't exactly been stellar lately. In October, the company registered just 6,964 new vehicles across the region, down nearly 50% from the 13,519 registrations it posted in October 2024. That's a pretty steep drop, and it suggests Tesla could use a fresh product to shake things up in a market that's getting increasingly competitive.

At the same time, Tesla is preparing to launch its Full Self-Driving technology in Europe. The Dutch safety regulator RDW recently confirmed Tesla's February 2026 timeline for FSD deployment, though they noted the date could shift. If Tesla can coordinate the Model Y L launch with FSD availability, it might create a compelling one-two punch for European buyers who want more space and cutting-edge driver assistance features.

Market Cap Milestones

Despite the European sales slump, Tesla recently hit a $1.58 trillion valuation following a significant stock rally. To put that in perspective, the EV maker's market cap now exceeds the combined valuations of Toyota Motor Corp. (TM), BYD Co. Ltd. (BYDDY) (BYDDF), and Xiaomi Corp. (XIACF) (XIACY). That's a remarkable achievement, even if it raises questions about whether the stock price has gotten ahead of the fundamentals.

Shares traded at $471.50 during pre-market trading, down 0.76%, according to market data.