Musk: Tesla May Not Produce Model Y L in the United States (US)

According to foreign media reports, Tesla CEO Elon Musk recently stated that the company’s newly launched six-seat Model Y L in China may never be produced in the United States, citing the rise of autonomous vehicles as the reason.

Elon Musk replied to a user's post on his social media platform X, saying: "The six-seat version of the Model Y will not begin production in the United States until the end of next year. However, considering the rapid development of autonomous driving technology in the US, this version of the car may never be produced in the United States."

Image source: Tesla

Musk did not elaborate on why the rise of autonomous driving would reduce the demand for this six-seater vehicle. Tesla also did not immediately respond to a request for comment.

The Model Y L, produced by Tesla's Shanghai Gigafactory, features a longer wheelbase and three rows of seats, priced at approximately $47,200. The car was launched in China on August 19, and currently, Tesla is facing increasingly fierce competition in the Chinese market from local electric vehicle manufacturers such as BYD and Xiaomi.

For a long time, three-row gasoline SUVs have been very popular among American families. However, for automakers, producing profitable three-row electric vehicles remains a challenging business. In particular, the Trump administration’s plan to end the electric vehicle tax credit policy ahead of schedule will make electric vehicles even more expensive, prompting automakers to focus more on smaller and more affordable electric models.

Tesla is also preparing to launch a more affordable version of the Model Y later this year. This version may streamline some high-end features, but Musk emphasized that it is "essentially still a Model Y."

In the United States, Tesla has increasingly shifted its strategic focus toward its vision of autonomous ride-hailing. In June, the company launched an autonomous taxi service within a limited area in Austin, Texas, and plans to expand the service to cover half of the U.S. population by the end of this year.

Last year, Musk told investors that continuing to manufacture traditional cars will be "meaningless" as autonomous driving gradually becomes mainstream. Tesla plans to officially begin production next year of the Cybercab model, designed specifically for autonomous taxi operations. The vehicle features a two-seat layout and has eliminated the steering wheel and pedals.