Aug 20 (Reuters) - Tesla 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 ( XIACF ).

"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.