Tesla’s (NASDAQ:TSLA) plan for a six-seater SUV for American drivers faces delays and could possibly be shelved altogether as the company’s CEO points to the rise of self-driving vehicles for the uncertain fate of the expanded Model Y.
“This variant of the Model Y doesn’t start production in the U.S. until the end of the year…might not ever, given the advent of self-driving in America,” Tesla CEO Elon Musk said in a post on social media site, X.
According to Reuters, Musk didn’t offer an explanation of why self-driving capabilities would stall production of a six-seater vehicle, although it’s possible FSD technology is not well-adapted to a larger vehicle given the weight of the vehicle, larger blind spots, and added braking distance.
Additionally, with the expiration of EV tax credits, automakers have pivoted to producing smaller, less expensive electric vehicles to help offset the higher cost. To that end, Tesla (NASDAQ:TSLA) is planning to build a cheaper Model Y later this year.
Although the company has no immediate plans for a six-seater SUV for Americans, Tesla (NASDAQ:TSLA) is going forward with a long-wheeled, six-seater for the Chinese market. The Model Y L aims to compete with rivals like BYD (OTCPK:BYDDF) (OTCPK:BYDDY) and appeal to Chinese consumers’ perception that longer vehicles imply greater wealth and are frequently chauffeur-driven.