There have been many talks about Tesla’s SUV electric vehicle, Model Y. Even the Tesla CEO Elon Musk has been talking about this SUV model since 2015. But the wait might get over soon, as according to some reports, Tesla has sent letters to its shareholders regarding starting the production of the Y model as soon as 2020 ends.
The Model Y is going to be a mid-sized SUV vehicle, whose design is yet to be revealed. Allegedly, the Model Y will be based on the Model 3 sedan, and it will obtain 75 per cent of its parts from the most affordable Tesla model. Hence the production cost of the Model Y may be a bit lesser than the Model 3.
Tesla, basically, has its production line for its other models including S, X and 3, based in Fremont, but the Model Y may get its own dedicated production line at Gigafactory in Nevada, since there may not be much space for the production at Fremont for the Model Y.
The company came up with the plan of starting the production of the Model Y, as a result of a profitable fourth quarter of 2018, reported last year. Tesla said on Wednesday that it made a profit of $139.5 million in the fourth quarter, after recovering a loss of $675.4 million from a year earlier.
Tesla went public in 2010, and this is the first time that the automaker has revealed its profits, in consecutive quarters. According to Musk, the company is ready to invest in new projects and bring improvements to the older ones. The company has claimed that it will cut the cost on various Tesla models, will improve its service operations, launch at least three sedan models for its Chinese and European customers, and also will start working on its Model Y.
The Model Y is expected to be a crossover, and that may lead to an increased demand for Nidel Y over Model 3, resulting in an uptick in sales, and profit. If we consider the letter Tesla sent to its shareholders, the year is going to, certainly, be a profitable one for Tesla.
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