Tesla has confirmed that production of the Model Y should commence in the fall of 2020.
The electric car manufacturer took the covers off its entry-level electric SUV back in March, but we already knew the car wouldn’t reach the production line for quite some time. In fact, Tesla had yet to even decide exactly where it could build the Model Y until the second quarter of this year, as confirmed by the company’s latest quarterly results.
Eventually, it started production preparations for the Model Y at its Fremont, California factory and firmly believes that it will prove to be more profitable than the Model 3.
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“Due to a significant overlap of components between Model 3 and Model Y, we are able to leverage existing manufacturing designs in the development of the Model Y production facilities,” Tesla said.
“Additionally, we are making progress managing Model Y cost with only a minimal cost premium expected over Model 3. Due to the large market size for SUVs, as well as higher ASPs, we believe Model Y will be a more profitable product than the Model 3.”
For a time, the automaker was considering building the Model Y at its Gigafactory in Nevada, but has evidently decided against that. It will also build some Model Ys at its upcoming manufacturing facility in Shanghai, China, but those are, in all likelihood, meant solely for the local market.
Tesla will sell the Model Y in the Standard Range, Long Range, Dual Motor AWD, and Performance guise. The entry-level model will be priced from $39,000, while the Performance will start at $61,000.