Last week, CEO Elon Musk announced Tesla will begin preparing for 2020 production of the mass market SUV. He expects work to begin sometime this year, and he predicted the Model Y would become Tesla’s best selling vehicle.
“The demand for Model Y will be maybe 50% higher than Model 3, could be even double,” Musk told investors on a conference call last week.
If his figures are correct, the Model Y will have a chance to become the best selling SUV in the United States, a title currently held by the Toyota Rav 4.
SUVs are key for the entire auto industry as American car buyers shift away from sedans. Traditional automakers such as General Motors, Ford and Fiat Chrysler plan to mostly stop selling sedans in the United States.