Tesla Targets November 2019 to Begin Production of the Model Y Crossover
【Summary】Electric automaker Tesla is targeting November 2019 to start production of the Model Y small crossover, with production in China to begin two years later.
Electric automaker Tesla is targeting November 2019 to start production of the Model Y small crossover, with production in China to begin two years later, two sources told Reuters this week.
According to Reuters, Tesla is accepting preliminary bids for supplier contracts on the Model Y, a compact crossover version of the Model 3 sedan. Tesla has given suppliers few details about the program and had not provided a production time frame, but has now indicated the vehicle would begin to be built at its Fremont, California, plant in November 2019, the two sources with knowledge of the supply chain said.
Tesla just might have another hit on its hands if the company can pull off production of a new model. Sales of compact crossover SUVs are surging in the U.S. and the Model Y can potentially become a big hit for the company. But before introducing a new model, the company needs to reach its production goals for the long-awaited Model 3.
Nearly 500,000 people have put down deposits for Tesla's lower priced electric sedan, which starts at $35,000. At Telsa's current production rate, it will take years fulfill these orders. This gives rival automakers plenty of time to deliver a mass-production electric car to compete with the Model 3.
The new Model Y shows that Tesla is pushing ahead with agressive plans to build a new vehicle, despite production bottlenecks and costs associated with the Model 3. The sedan's launch has been plagued by delays and manufacturing bottlenecks leaving the company short on cash. The company burned through $3.4 billion last year.
Tesla tried to reassure investors last week and said its weekly Model 3 output had doubled during the first quarter and that production rates would accelerate through the second quarter to 5,000 units per week, or about 250,000 vehicles per year. However, since beginning production of the Model 3 in July 2017, Tesla only managed to build around 15,000 Model 3s.
Telsa's plans for a second factory in China might be vital to produce the Model Y. It does not appear its Fremont, California assembly plant can ramp up production anytime soon to make both the Model 3 and Model Y, while still producing the Model S and X.
Toyota Investing $500 million in Uber to Develop Driverless Cars
Tesla Shares Sink as CEO Elon Musk Gives Revealing New York Times Interview
Silicon Valley Lidar Maker Quanergy Systems Puts its Planned IPO on Hold
Nikola Motor Raises $100 Million This Month for its Hydrogen-Powered Trucks
GM Seeks Tariff Protection for the Envision, a Popular Chinese-Made SUV
Toyota Looks to Expand Production & Lower Costs of Hydrogen Fuel Cell Vehicles
Lyft Buys Bike Sharing Company Motivate, Parent of New York-Based CitiBike
Boston to Allow City-Wide Testing of Self-Driving Cars
- Ride-Hailing Company Lyft Buys U.S. Digital Advertising Startup Halo Cars
- Automakers Finally Close Their North American Factories Over Coronavirus Concerns
- Tesla’s Market Value More Than Doubles Since the Start of 2020, Topping $170 Billion
- Cadillac Expands Super Cruise to More Models, Adds More Features
- Aptiv Unveils its New 'Smart Vehicle Architecture' for Electric, Connected and Autonomous Vehicles at CES
- DC Fast Charging, Passive Air Cooling Systems Lead to Quicker EV Battery Degradation
- Einride is Hiring the First ‘Remote Autonomous Truck Operator’ in the Industry
- Researchers Trick Tesla Vehicles into Driving 50 MPH Over the Speed Limit with a Traffic Sign Altered with Black Tape
- Baidu is Building a 5G-Powered, 20 Square Kilometer Test Site for Connected & Autonomous Vehicles in Chongqing, China
- Ford to Use Seat Ventilation Fans From F-150 to Make Respirators