Spotted: The new Tesla Model Y being road tested
Tesla unveiled its $50,000 electric crossover the Model Y a few months ago. The brand is hoping to – and needs to – capitalize on the current market for crossovers. The global SUV market has been continuing to expand, and this is Tesla's ticket in.
The brand has also learned from some of the problems it faced with previous models. Tesla has had some problems with manufacturing costs of its cars, but is aiming to avoid that with the Model Y. In 2019's second-quarter earnings call, CEO Elon Musk said: "Since Model Y has high component overlap with Model 3, it should be — we expect it to be — a lot easier to ramp. It’s something on the order of three quarters of all the parts [that] are common between Model 3 and Model Y. And we expect the manufacturing costs for Model Y, despite additional content, to be approximately the same as Model 3."
The Model Y is set to be incredibly profitable for Tesla, with a large market for the car, and low manufacturing costs for the brand. This vehicle is poised to be a major success, since it's well-priced, in a popular segment, and easy for Tesla to manufacture.
In addition, Tesla has also had problems with getting the cars out on time. But the Model Y has now been spotted being road tested around Tesla headquarters, suggesting the car is on track for production soon.