Based on the American vehicle buying patterns we can conclude that Tesla Model Y crossover might become company’s top seller and the key car for them when the production reaches projected 500,000 units. Earlier this month, a Morgan Stanley research analyst report predicts this scenario and Michael Ramsey, an analyst at Gartner Inc. agrees.
Ramsey said: “Fundamentally this is a super important vehicle because this is what Americans are buying. The sedan is essentially being eaten alive by the compact crossover.”
According to Autodata Corp., trucks, SUVs, and crossovers account for 62.5 percent of US sales, while in 2016 they made up nearly 60 percent of all US sales. The Model Y is the compact crossover variant of the bigger Model X that sits on the Model 3 platform. This car is designed for those who seek plenty of space in the cabin and some other functionality advantages that crossovers offer but are not ready to pay a huge amount of money that is needed for Model X. The customers who have never had an electric vehicle might choose this crossover as their first one.
Even though Model 3 is taking all the spotlights as it will be launched this year, Tesla is taking the Model Y more seriously despite what we believe. We will know more about the Model Y “next week” as the CEO Elon Musk had tweeted recently, but the focus switches to the Neuralink artificial intelligence project backed up by the first man of the company, and we shall know more about Tesla’s crossover in 2018. Musk also tweeted: “Oh Model Y is coming too in a few years. Kinda have to.”
Model Y will also be important to Tesla’s ridesharing program that could be named Tesla Mobility, predicts the Morgan Stanley report. In addition, possible future customers might be ready to give more money for the Model Y despite the fact that Model 3 will be affordable as they are keen to paying a premium for larger vehicles. The crossovers bring functionality, and that is what the customers are looking for.
Musk also believes that the sales of the Model Y will be high – between 500,000 and 1 million units are expected to be sold annually. The CEO added: “It’s the obvious priority after the Model 3.”
Tesla will have to find the way to avoid the mistakes they made on the Model X SUV, and this will not be an easy task for them. According to the Consumer Reports, the Model X “has been plagued with malfunctions, including its complex Falcon wing doors.” Some other issues of the Model X are locks and latches, power equipment, the climate system and electronics. Tesla confirms that Model 3 is produced to comply with the highest standard, a standard that will be carried over to the Model Y.
