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

(Reuters) - Tesla (TSLA.O), 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 (002594.SZ), and Xiaomi (1810.HK).

"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.