The Silicon Valley carmaker will using existing technology to build the Model Y
You’ll soon be seeing even more Teslas on the road.
Chief executive Elon Musk said in an earning calls Monday that the electric carmaker’s upcoming Model Y SUV would be built off the engineering architecture of the Model 3, Tesla’s entry-level vehicle. This is a reversal from Musk’s decision several months ago to create an all-new battery architecture for the compact SUV, an expensive and time consuming process.
The Model Y had been slated for release in 2019 or 2020. Though that date hasn’t yet been revised, Musk attributed his about-face to a desire to get more Model Ys on the road more quickly and thanked his executive team for “reeling [me] back from the cliffs of insanity.” The SUV is reportedly the most popular type of vehicle in the world. Indeed, between 2009 and 2016, American sales of “trucks”— a category that includes SUVs— have doubled.
— Drew Stearne (@drewstearne) August 3, 2017
Few specific details have emerged about the Model Y, which resembles a Batmobile. Pricing has not been disclosed, though it’s expected to come with the gull-wing doors that are also incorporated into Tesla’s Model X. Musk said in the same call that his company would eventually build a new engineering platform, but not for now. “I still think we want to do the crazy thing in the future, but we will punt that until after the compact SUV,” he said.
Palo Alto, Calif.-based Tesla reported a loss of $336 million this year, though revenue doubled to $2.79 billion. The Model 3, its recently released first mass market car, continues to see strong demand, with 518,000 existing preorders for the $35,000-and-up vehicle. The upstart competitor to Ford and General Motors is hoping to produce a million cars a year by 2020.
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