Elon Musk to unveil Tesla's Model Y next week

Hannah Boland
Elon Musk said detailed specifications and pricing would be provided at the launch event, on March 14 -  Noah Berger
Elon Musk said detailed specifications and pricing would be provided at the launch event, on March 14 - Noah Berger

Tesla will unveil its Model Y SUV next week, chief executive Elon Musk has said, launching a product which is expected to give it a foothold in a "far larger and faster growing global segment".

In a series of posts on Twitter last night, Mr Musk said the new compact SUV would be 10pc larger than its Model 3 electric vehicles, so would cost "around 10pc more and have slightly less range for the same battery".

The billionaire, who had just hours earlier launched  his first spaceship built to fly astronauts to the International Space Station, said detailed specifications and pricing would be provided at the launch event, on March 14.

The Model Y, which is expected to go into volume production next year, will be produced using many of the same components as the Model 3 vehicle. For example, it is expected to be based on the Model 3's steel and aluminium structure, and have "normal" doors, not the Falcon Wing doors that are seen on Tesla's other SUV, the Model X.

Analysts have been largely optimistic over the launch of the Model Y, and Morgan Stanley's Adam Jonas last week said an "all-new midsized crossover/SUV is Tesla's chance to take the learnings from the Model S, X, and 3 in design and manufacturing to offer a product in a far larger and faster growing global segment".

However, he cautioned that the "key downside to providing too much information about the Model Y and its enhanced capabilities in software and hardware is that it could steal the thunder of the still-ramping Model 3 just as it's getting introduced into key international markets".

Tesla recently started Model 3 deliveries to parts of Asia and Europe, with some customers having waited three years for the vehicles. The company has said it will start deliveries to the UK later this year, with the slower roll-out due to the fact vehicles in the UK need to be right-hand drive.

Tesla was last year forced to push back targets for Model 3 deliveries a number of times, having struggled with production bottlenecks and organisation issues, although signalled it was over the worst of those issues. 

Mr Musk last week said 2018 had been the "most challenging in Tesla’s history".