Elon Musk says that Tesla is gearing up for producing the Model Y electric crossover.
It’s been a banner 2018 for Tesla. For the first time since the company started making electric vehicles way back in 2010, Tesla is finally a profitable company! According to Tesla’s 4th quarter 2018 earnings report, the company made a $139.48 million profit during that quarter. This is the first time the company has been in the black, silencing many critics that were expecting the company to go bankrupt.
This sudden turn to profitability is mostly thanks to the Model 3 finally seeing high-volume production. Last year, almost 140,000 Model 3s were sold, making it the best-selling premium vehicle in the United States.
Tesla is not resting on its laurels, however. According to a new report from Wired, Elon Musk told investors that Tesla is retooling factory space in preparation for the arrival of the Model Y crossover.
Musk said that he expects Model Y to surpass even the Model 3 in terms of demand, and not by a small amount. Crossovers and SUVs are wildly popular in North America and beyond, while traditional sedan body styles like the Model 3 are going out of vogue. It’s a testament to the Model 3’s popularity in particular that allowed it to overcome the decline of sedans in the US.
We don’t know much about the Model Y other than the fact it will sit below the Model X and it will share roughly three-quarters of its parts from the Model 3. It will be manufactured at Tesla’s Gigafactory complex just outside of Reno, where “batteries and powertrains will come out and go straight into the vehicle,” according to Musk.
Musk also stressed that the Model Y will have a much easier birth than the Model 3, which was plagued by part defects and rebuilds throughout the first half of 2018. Volume production is expected to begin early 2020.
There was one more bomb dropped during Musk’s earnings call: Tesla’s electric pickup might just debut later this summer.