Published: Sat, March 16, 2019
Finance | By Kristine Clayton

Tesla Model Y starts at $47K in late 2020

Tesla Model Y starts at $47K in late 2020

"We are bringing sexy back, quite literally". He apparently wanted to go with the Model E name instead of Model 3 but Ford (who also applied to trademark the Model E name) didn't like that idea.

Along the way, Musk explained the ins and outs of his naming convention, including the fact that he couldn't use the name "Model E" because Ford had it trademarked.

Only one of the new models was driven onto the stage, where it shared the limelight with other, older vehicles.

The Model Y is available for preorder right now; that is if you're willing to part with a fully refundable $2,500 reservation fee. Model 3 production is understood to remain at the company's Fremont California manufacturing plant. Y completed the acronym. For $3,000 you can add Tesla's Autopilot to any of the three models and for $5,000 you can opt for limited self-driving functionality. The similarities between the designs are intentional, because that commonality is expected to speed development - thus avoiding the "production hell" that marked the Model 3's birth.

Given the unquenchable thirst buyers have for crossover and SUVs, the Model Y is a tremendously important vehicle for Tesla. The twin engine version starts at 51,000 dollars, offers a top speed of 135 mph (217 km/h), acceleration from 0 to 60 mph in 4.8 seconds and an estimated EPA range of 280 miles (451 km).

The long-range Model Y with a range of 300 miles, is set to arrive in the fall of 2020 and will come with a price tag of $47,000. Orders are already being taken online. Th seven seat model is optional of course thanks to 66 cubic feet or 1.9 cube meter of cabin space matched with a panoramic glass roof.

Getting the Model Y into production quickly will be key for Musk to build on the momentum of the Model 3, the less-expensive sedan that catapulted Tesla up the sales charts and helped the company post back-to-back quarterly profits for the first time.

Tesla Reveals Model Y ‘Baby SUV’ Tonight: How To Watch Live
Tesla officially unveils the Model Y

After the stream concluded Tesla tweeted a link to where customers can customise their future Model Y.

"2018 felt like aging five years in one", Musk said.

"We've made 550,000 vehicles, something like that", he said. Bringing in early down payments for the vehicles would help Tesla generate the cash it needs to repay almost $1.7 billion in loans that come due within the next 16 months.

Musk also said the Model Y will be powered by the same battery as the Model 3. But there are a million ways to fail in the vehicle business, and the lessons from one challenge can easily drive an inexperienced automaker from one existential challenge to another. "I think it'll probably sell ..."

Based on the Model 3 sedan, the Model Y will serve as a more affordable alternative to the current Model X performance SUV. "So there you have the S3XY presentation". The Long Range All Wheel Drive is slightly faster but has a shorter range.

The company began the year with about $11 billion in debt and $3.7 billion in cash, but those figures presumably fell recently when it repaid about $920 million in bonds. "We would have thought the reveal would have been closer to start of production".

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