Tesla’s six-seat Model Y variant may not be launched in US

(Reuters) -Tesla (TSLA) CEO Elon Musk said the company’s new six-seat Model Y variant, launched in China this week, might never enter production in the United States, citing the rise of self-driving vehicles.

The Model Y L, built at Tesla’s Shanghai factory, features a longer wheelbase and three rows of seats, and is priced at around $47,200. It went on sale in China on Tuesday, where Tesla faces mounting competition from domestic EV makers such as BYD and Xiaomi.

“This variant of the Model Y doesn’t start production in the US until the end of next year,” Musk said in a response to a post from an X user. “Might not ever, given the advent of self-driving in America.”

Musk did not elaborate on how the rise of autonomous driving would negate the need for a six-seater vehicle. Tesla did not immediately respond to a request for comment.

Gas-powered SUVs with three rows have long been popular among American families.

However, making profitable three-row EVs is still a challenging business for automakers. Recent policy changes by the Trump administration are also set to make electric vehicles more expensive, prompting automakers to focus more on smaller, cheaper variants.

Tesla is also preparing to launch a cheaper Model Y variant, likely with fewer premium features, later this year, which Musk has described as “just a Model Y”.

Tesla has increasingly shifted focus in the U.S. to its robotaxi ambitions. The company launched a limited robotaxi service in Austin in June and aims to scale operations to half of U.S. population by the end of this year.

Musk told investors last year that building traditional vehicles would be “pointless” in a self-driving future. Next year, Tesla is set to start production of the Cybercab, a dedicated two-seater robotaxi model without a steering wheel and pedals.

(Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco; Editing by Anil D’Silva)