The Model YL has six seats and a true third row, while the Model 3 Plus has longer range than current versions of the electric sedan.

Tesla Inc. is preparing to launch a longer, six-seat version of its Model Y sport utility vehicle in China, where the carmaker has been losing ground to domestic manufacturers with fresher lineups.

Currently, the Tesla Model 3 with the longest range (that's the RWDe model) is listed as having 753 kilometers of range in China. The new variant could potentially exceed 800 kilometers (roughly 500 miles), which would be a first for Tesla.