Tesla CEO Elon Musk surprised investors on the Q4 earnings call be hinting at some new info regarding the upcoming Tesla Model Y. The Model Y, which is set be a companion to the affordable Model 3 sedan, will apparently share as much as 75% of its parts with the Model 3. This is huge news and lends credence to the idea that the Model Y could be in production by 2020.
Tesla Model Y Production
Model Y Specs
We don’t know a lot about the Model Y yet. At time of writing, the best guess that industry analysts have is that the Model Y could be some type of crossover. Tesla’s affordable Model 3 vehicle is a full-sized sedan, so it only makes sense that an SUV would be its sibling.
After all, the SUV is on track to pretty much kill off the sedan in 2019. Very few carmakers still post profits on their sedans, with Tesla being a rare exception. If Tesla wants mainstream success across the US and global markets, an SUV-style electric car may be just what they need.
Production
On the call, Musk made it clear that the Model Y is intended to sport nearly 75% of the same parts as the Model 3. This is a big twist for the company and heartens investors slightly. After all, ramping up to full-swing production was quite the hurdle for the Model 3, as the machining process to get the vehicles ready was daunting.
However, with those parts already created and ready to go, it’s looking like the Model Y can capitalize on the work that’s already been done. If Tesla is able to take advantage of its existing manufacturing, the overhead for the Model Y could be markedly lower and help the company post much better profits on the Model Y.
Location
Rumor has it that Tesla is looking to expand from their production facility in Fremont for Model Y production. Currently, the Model S, Model X and Model 3 are all manufactured at that production facility. It makes sense that they’d want to branch out, given the Fremont facility is rather close to being at capacity.
Just last year, when Tesla was pushing to meet demand for Model 3’s, the Fremont facility had a tent added on for production. It was a silly time and showed just how slam-full the Fremont facility is.