Tesla on Thursday unveiled its latest vehicle, the Model Y crossover SUV, at its design studio in Hawthorne, California.
The Model Y is Tesla's second SUV, after the Model X. The vehicle will have a range of 300 miles a charge, the ability to accelerate from zero to 60 mph in 3.5 seconds, and the capacity to seat seven people, CEO Elon Musk said.
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Tesla began allowing customers to reserve the vehicle for a $2,500 deposit after Thursday's event. Three trims are available to reserve: a long-range, rear-wheel-drive trim that starts at $47,000; a long-range, all-wheel-drive trim that starts at $51,000; and an all-wheel-drive performance trim that starts at $60,000.
Less range than the Model 3, but more cargo space
The long-range, rear-wheel-drive trim has the longest projected range of the three, at 300 miles, while the other two trims have projected ranges of 280 miles. The performance trim will be the fastest of the three, with a top speed of 150 mph and the ability to accelerate from zero to 60 mph in 3.5 seconds, Tesla says.
Tesla's Model 3 sedan, which the automaker began delivering in 2017, has a top range of 325 miles and the ability to accelerate from zero to 60 mph in 3.2 seconds, depending on the trim. The Model 3 starts at $35,000.
The Model 3 has 15 cubic feet of cargo space, while the Model Y will have 65 cubic feet of cargo space, Tesla says.
Production for the three available Model Y trims is expected to begin at the end of 2020, Tesla says. Musk said during the event that a standard-range trim would arrive in 2021 and start at $39,000.
During the unveiling event, Musk touted the Model Y's performance, functionality, and safety.
"It has the functionality of an SUV, but it will ride like a sports car," Musk said.
Musk said he expected the Model Y to become the safest midsize SUV.
"Of any midsize SUV, it will be the one you want," he said.
The Model Y reveal comes amid financial, demand concerns
The Model Y's unveiling comes at a time when Tesla is facing mounting financial pressure and, in the view of some analysts, a demand problem.
In late February, Tesla announced it was closing most of its stores and moving to an online sales model. The company said the move would enable it to slash the prices for all of its cars and roll out its long-promised $35,000 Model 3 sooner than expected.
About a week later, though, Tesla backtracked and said it would actually keep more stores open and increase the price of its vehicles closer to their previous amount. These moves signal the company may be facing some significant headwinds, according to Goldman Sachs analysts.
"In the US, we think the amount of information points to declines in demand for Tesla's higher priced vehicle variants following the start of the phase-out of the Federal Tax credit; and we believe moves by the company to continue to improve its cost structure in order to deliver lower priced vehicles and tap remaining consumer demand corroborate this," Goldman Sachs told clients in a note earlier this week.
What's more, Goldman analysts said there was also the worry that the reveal of the Model Y could put further pressure on the Model 3 sales because people might opt to wait to purchase the SUV instead of opting for the lower-cost sedan.
Have a Tesla news tip? Contact this reporter at mmatousek@bjinnox.com.
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