Elon Musk’s recent tweet announced the release of the most awaited Tesla Model Y SUV. The unveiling of the mini version of Model X will take place on March 14 at Tesla’s Los Angeles design Studio. This will be the company’s fifth electric car after it was founded in 2003.
Model Y shares 75% of its components with Model 3 sedan. Musk also tweeted that Model Y being an SUV would be 10% bigger and costlier than Model 3 and it will have slightly less range for same battery. It will most likely be built in “Gigafactory” outside Reno. Tesla also has plans to build a Gigafactory in Shanghai, China where entry-level versions of Model Y will be built, these models will be available only in China and not USA. Unlike its predecessor Model X, this model won’t pack in “Falcon Wing” doors. More details on specs and pricing will be released at the event and Tesla will also be providing test rides on its Model Y prototypes.
To overcome the price barrier the company’s CEO has decided to shut down most of the retail stores and shifting . However , most critics view it as a huge financial risk and a possible cash flow issue for Tesla as the closing of stores signifies job cutoffs for the employees. The company has already closed stores at International Market Place in Honolulu and another at the Gardens on El Paseo near Palm Springs in California. Musk’s aims to reduce the price of these electric cars by an average of 6 percent by selling them online and cutting down other expenses.
Although the unveiling will occur next Wednesday, it won’t be flashing the roads until 2020. According to Business Insider report last year the production of Model Y will begin on August 2020 after a two-month pilot run. By September 2020 the company aims to produce 2000 Model Y’s per week.