Tesla Model Y set for a 2019 release
Tesla is targeting November 2019 to start production of its Tesla Model Y SUV, a smaller sibling to the Model X. With production of the Model 3 still behind targets and no sign of a RHD version, some will question adding another model to the line.
‘Tesla Model Y’ is not the official name yet, but what Tesla insiders have been referring to when talking about a crossover all-electric vehicle built on the same as the Model 3. Tesla CEO Elon Musk said that the vehicle will feature ‘Falcon Wing’ doors like the Model X.
Reuters reported that Tesla are accepting preliminary bids for supplier contracts on the Model Y. The vehicle will be built at the Fremont plant in California in the final quarter 2019.
Competitive bidding is a early step in the complicated process of car manufacturing. After the automaker shares its plans, suppliers compete based on factors including cost and technology. Typical of Tesla’s approach to shortening production timeline they have cut the competitive bidding to just 18 month. Normally lead time for competitive bidding is around 2 years.
The Tesla Model Y is one of the projects in the Tesla pipeline, which announced a Semi and Roadster recently. Additionally Tesla continues to build its Gigafactory battery factory in Nevada. The battery module assembly problems have contributed to Model 3 delays.
Tesla has stated it will not need to raise additional funds this year. Despite this Moody has quoted a likelihood of a capital raise of more than $2 billion in its downgrade last month, spurred by concerns about cash reserves and Tesla’s ability to meet production targets. The company burned through $3.4 billion in cash in 2017.