Tesla Model Y Is More Important Than The Model 3

After Roadster, Models S and Model X we could see Tesla preparing and introducing Model 3 but at the same time announcing future Model Y. Clearly, both S and X are reserved for those with deeper pockets, but 3 sedan and Model Y SUV/crossover should allow most people to own affordable EV. But why is the Model Y more important than the smaller and cheaper car that has been pre-ordered in insane numbers?

If we take a look at the market situation, we will immediately notice that the sales of sedans are dropping while the profit that SUVs and crossovers are making is on the rise. Surely smaller and more affordable vehicle that has been unveiled will return great sale results to the company, but it is clear that other segments are bringing more money. When you are young car maker you need to watch over every penny, but when you are in a position of Tesla Motors, and you are threatening to jeopardize some serious names in the business it is even harder to succeed.

Math is simple; if the buyers are looking for SUVs give them SUVs. As a result, we saw major companies investing heavily into the development of new models in this segment. We know that Model X is offered, but its price goes over $100,000 before taxes so you can’t expect it to be sold in enormous numbers. The best move is to bring Model Y to the game, slightly smaller, a decently powerful mix of crossover and SUV at a much lower price.

Simply put Model Y will bring more money to the company than the Model 3. This is the main reason why we can agree with the conclusion that Y is far more important for the company and that they should devote more attention to it and speed up its development.

What problems could the Tesla face in case they wait too long? Rumors we have received suggest that Volvo is working on an electric vehicle that would have similar features like Model Y and that it could be launched in 2019. Current predictions and most optimistic reports say that Model 3 is coming to the market in 2018 and that the new electric SUV might appear between 2024 and 2024 with a later option to be more realistic.

Many other companies are planning to enter EV segment and Mercedes could release electric SUV at the Paris Motor Show that is scheduled for October. Production of this vehicle could start in 2019 allowing it to start its sales significantly before Tesla. That’s not all. Volkswagen also announced plans to bring five EV’s in the next four years, and one of those might be in full-size SUV or crossover segment.

Obviously, that Tesla managed to put itself on the map as a serious and reliable partner when it comes to electric car production. This gives it a clear advantage over other companies that are just starting and we think that there could be a vast number of people that would gladly wait a little bit longer for one of their vehicles. What is also sure is that they need to hurry up with the development of Model Y and that they need to make sure that it comes as a next big thing after Model 3.