Amid much of the recent challenges Tesla faces, an announcement was published that stated the new compact crossover SUV called the Model Y would begin being produced in November of 2019. More recent comments by Elon Musk, CEO of Tesla, the news has changed as Musk stated this report was falsely released and reported by Reuters. The fact that Tesla won’t begin production of the small crossover SUV in 2019 is probably one of the smartest changes the company has made in recent years as they have faced challenges with the production of the current lineup offered.
Right now, retail consumers can purchase the Model S and Model X from Tesla and the company is working to ramp up production of the Model 3 to the point of being able to meet the long list of customers who have already preordered this car. The challenges faced with reaching the production levels needed to meet the demands of customers and keep those on the preorder list as loyal Tesla customers have become a real one as the brand hasn’t been able to reach the goal of 10,000 cars per week across the three models offered at any point in their production numbers.
Halting the Model Y Rumors and Taking a Step Back
Not only is Tesla facing production issues, but every time one of the vehicles from this brand is in a crash that takes a life, it becomes news that’s shared around the country. Imagine if we did the same with a Ford, Chevy, or Dodge vehicle; we’d never have anything else to discuss. While Tesla is a new brand and the fact that only EV models are built makes it different, we seem to pay closer attention whenever the crash involves one of the Tesla models.
Because of the negative publicity for crashes and the production challenges, it wouldn’t make any sense for Tesla to begin producing the Model Y next year, but Elon Musk did say it could be offered the year after and be a prospect for the early part of 2020. Another part of the announcements offered includes the possibility of a second Tesla factor which would be the home of the Model Y. The plan is to make a decision by the end of the year to find a new location for the next factory, which could be placed in China and be the next Gigafactory and where Tesla expands its operations.
Building another factory to offer a new set of production lines could be the step in the right direction needed for Tesla to be able to begin to build enough models to finally meet the needs of those waiting for the Model 3 and begin to produce the newest member of the lineup in 2020. We’ll have to keep our eyes and ears open to learn when this new model will begin to be built and where it will be produced in the future, but taking a step back from the most recent reports is likely the right step for Tesla.
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