Tesla Model Y set to release in 2020

Tesla has showcased a new electric crossover SUV, the Model Y in March this year. It is expected to hit the market in late 2020. But before that, the automaker is preparing grounds to run on the sales charts.

Tesla Model Y price starts from $46,700 for the dual-motor all-wheel-drive version which can run 450 kilometres on a single charge. If we talk about the similarities between Model Y and 3, then it can be found that both models share 75% components, which of course helps the firm in cost-reduction.

Elon Musk, Tesla CEO said, “Model Y’s ‘high component overlap with Model 3’ makes it easier to ramp”. He further added that the cost-reduction idea will improve the margins of the firm and will make the Model Y profitable. Besides this, the new model also brings in multiple benefits as compared to Model 3.

The firm also mentions the fact that unlike the sedan, the SUV global market continues to shine. If we see the numbers, the sales volume of the SUV segment holds the 36.4% share of the global market and showed an increase of 6.8% in 2018. So, it is expected that Model Y will have good demanding numbers across the globe.

After the launch of Model 3, Tesla has gone through some hard times as it struggled for its production and suffered cash-crunch. So, for keeping its promise made in 2016, the company raised funds of $2.7 billion through the issuance of stock and convertible notes in May 2019.

And now, it has enough cash to ramp the production of Model Y and to bring the things on track. Apart from the long-range version, a cheaper and standard range version of the model with a range of 370 kilometres will also be available in 2021 with a price-tag of $39,000. 

Also read: 2019 Tesla Model 3 earned IIHS Top Safety Pick Plus tag