Tesla reverses after Model Y event

Posted March 17, 2019

Tesla had to make a decision, and it opted for engineering. The curvaceous body - as much a magnification of the Model S sedan, as the Model Y is an enlargement of the Model 3 - has borrowed the SUV nomenclature, critics say, simply because SUVs sell better than minivans do.

As far as Tesla's fundamental ability to produce the vehicle, it seems like that could have been possible. To paraphrase Tolstoy, profitable automakers are all alike; every unprofitable automaker is unprofitable in its own way.

Musk has announced yet another product way too early, the new vehicle that is a mini SUV will ship in fall 2020 according to Elon Standard time, which in the real world realistically means 2021. But here we are just half a decade later and numerous big makers have delivered, or are at the cusp of, launching alternatives; the Jaguar i-Pace, Mercedes-Benz EQC, Audi e-tron, Hyundai Kona electric, Kia e-Niro and BMW iX3, built by established vehicle makers with a reputation for being on time. The Model Y is also expected to achieve five-star safety ratings and can be enhanced over time via over-the-air updates. For example, VW's MQB modular kit supports vehicles as diverse as the Skoda Octavia, Audi TT and VW Atlas.

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The launch of the Model Y also reignited worries that Tesla would need to raise cash sooner than later. And that's only if it can meet production expectations, which has been its Achilles heel.

Tesla shares have fallen 16% this year.

It didn't matter five years ago, just a short hop in automotive time, when fully-electric cars were more an environmentally friendly accessory than a viable alternative to the family auto.

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Options include Autopilot and Full Self-Driving Capability.

Cheers from a hangar-packed crowd of Tesla customers, employees and members of the media welcomed a blue Model Y as it rolled out onto a stage next to the automaker's other models. The Model Y units which are destined for China are expected to be built at a Giga factory in Shanghai which is now under construction. But last week, Tesla reversed course and said it would leave many stores open and raised prices back by about 3 per cent. The crossover is ~76% the same as the Model 3 and the remaining ~24% probably wouldn't be a big challenge to integrate.

Tesla is inching closer to launching its next vehicle - the Model Y crossover - but the company has not yet chosen a site at which to build it just months ahead of the planned start of production, . Model Y pricing starts at around 10 percent over what a comparably equipped Model 3 does while offering a usable range of approximately 300 miles. Tesla's tax credit dropped to $3,750 on January 1, will drop to $1,875 on July 1 of this year, and will go away entirely as of January 1, 2020.

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On Tesla.com, you can already build and order a Long Range Model Y, with $2,500 down, today-which is one of the key differences versus Model 3, where the $1,000 merely secured a spot to be able to build a auto later. If the Y had come out first, would they even have bothered with the 3? Mention them in the comments space below. And at the top-end, its $60,000 Performance version helps it remain competitive with most brands. Tesla was able to successfully increase that by 50GWH. "Things are moving fast..." Above this, Tesla offers the $40,000 Mid Range and the $43,000 Long Range.

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