Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk has hinted that the new Model Y L, a 6-seater version of the Model Y SUV released in China, might not make it to the U.S.
‘The Advent Of Self-Driving In America'
Responding to a post on social media platform X by user Whole Mars Catalog on Wednesday, Musk indicated that the Model Y L might not come to the States.
"This variant of the Model Y doesn't start production in the US until the end of next year," Musk said in his response, adding that the vehicle may not make it to America at all given the "advent of self-driving" in the country.
Elon Musk's Comments Disappoint Tesla Faithful
Musk's comments left Tesla supporters, like influencer Sawyer Merritt, disappointed. "I'm a little surprised by this," Merritt said in his post on X, adding that drivers in America like big SUVs and that there was a need for larger, affordable electric SUVs in the country.
"Delaying the Model Y L launch by a year, or possibly not producing it here at all, I think would be leaving a lot on the table," Merritt said.
Another user, going by the name of Pascal__2k, criticized Musk's comments, calling the move a "really bad decision" before questioning the EV giant's commitment to selling cars in the U.S.
Gary Black Weighs In
Future Fund LLC's managing director, Gary Black, thinks Musk's comments come due to fears of sales cannibalization within the company's lineup. "Elon doesn't want consumers delaying purchase of other Tesla Model Y trims while they wait for a new Model Y L," Black said.
He also acknowledged that FSD or Full Self-Driving was still a priority for Tesla, but reiterated that FSD needs a 99.99% efficacy rate for autonomous driving to be profitable.
Black also added that any revenue generation for Tesla from FSD could also be difficult with "FSD take rates still in the teens, no licensing deals, and Cybercab still just a concept."
Tesla's FSD Lawsuits, Robotaxi Criticism From Experts
Meanwhile, Tesla has been under scrutiny for its FSD system. Recently, a district judge in California certified a class action lawsuit against the company for "misleading" claims regarding the FSD system's capabilities, calling the lawsuit "justified."
Tesla also faces another lawsuit from investors, which questions the safety of the Robotaxi and FSD following the Austin launch event in June, which saw the vehicle commit possible traffic violations.
Tesla's autonomous ride-hailing efforts also drew criticism from John Krafcik, the former CEO of Alphabet Inc.'s (NASDAQ:GOOGL) (NASDAQ:GOOG) autonomous taxi company Waymo, who refused to call the Tesla self-driving cab a "real" Robotaxi.
Tesla Tests FSD In Japan
Despite the lawsuits and criticism, Tesla released a new video that showcased the company testing its FSD system on the streets of Japan in the presence of a safety driver.
The video showcased the Tesla following traffic rules, maintaining the speed limit, as well as navigating an under-construction part of the road.
Tesla scores well on Momentum and Growth metrics, while offering satisfactory Quality, but poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!
Check out more of Benzinga's Future Of Mobility coverage by following this link.
Read Next:
Photo courtesy: Shutterstock
