In the past, Tesla missed its part-sharing goals, production and sales targets.
Its Model X was supposed to share a majority of its parts with Tesla’s Model S, but it only wound up sharing around 30 percent after Musk originally planned for 60 percent.
Pricing of the Model Y is a key consideration for investors. Bernstein senior technology research analyst Toni Sacconaghi wrote in a note ahead of the model’s debut, “We’d expect the initial price to be around $55,000. This will be key to manage against cannibalization.” He also said that, in the longer term, the Model Y could enjoy higher gross margins than Tesla’s Model 3, a car that the company intended to offer for an accessible price, aiming to bring electric vehicles to the masses.
Tesla previously said it would most likely manufacture the Model Y at Gigafactory 1, its sprawling battery plant outside of Reno, Nevada. Musk did not confirm this plan at the unveiling event.
While Tesla has accepted “pre-orders” or reservation payments for its newly unveiled electric cars in the past, Musk did not mention whether or when the company would begin to accept deposits for the Model Y, and how much those would cost.
The CEO spent the better part of the hour-long presentation recounting Tesla’s achievements building factories, charging infrastructure and luxury electric vehicles while battling electric car opponents and skepticism. Fans in the audience heckled Musk as they would a stand-up comic, and he bantered with them about where to build a supercharger next, (Saskatchewan, and Kazakhstan were mentioned) and more.
“It’s wild to think about, 11 years ago today we’d made literally one car. And a year from now we’ll have made a million,” Musk mused, echoing the content of a tweet that recently landed him in hot water with financial regulators.
While Musk did not give specific guidance as to the volume of Model Y SUVs the company planned to produce in 2020, he said, “We’ll probably do more Model Ys than S, X and 3s combined.”