Tesla to Unveil Model Y SUV as Electric Vehicle Competition Heats Up

SAN FRANCISCO (Reuters) – Tesla Inc. will unveil its Y model electric sport utility vehicle on Thursday night in California, promising a long-awaited crossover that will face competition from European automakers deploying their own electric competitors.

CEO Elon Musk said the compact SUV, built on the same platform as Model 3, which starts at $ 35,000, is about 10% larger than the sedan, will cost about 10% more and will have a slightly lower battery life.

Musk intends to unveil the car and propose fares and other details at a small event held in Tesla's design studio in Hawthorne, near Los Angeles, prior to the broadcast online from 20:00. PT (23h ET). (Www.tesla.com/modely)

Small SUVs are the fastest-growing segment in the United States and China, the largest auto market in the world, where Tesla builds a plant, allowing Model Y to better respond to request.

Until now, Tesla has hardly had any competition for its sedans, but competition for electric SUVs is intensifying as it attempts to master a new set of economic factors stemming from the line of luxury that made his reputation. The rating firm Fitch warned Thursday that, despite Tesla's lead, "the automakers in place have the ability to catch up … thanks to their ability to invest and their strong track record in product management. ".

Tesla's targeted production date at the end of 2020 would be Audi's latest offering of Audi's electric SUVs, Mercedes-Benz and BMW from Daimler AG.

Tesla shares are down 24% from the record high of $ 379.57 recorded in August when Musk had tweeted that he was taking Tesla privately.

The plan, which was later abandoned, ushered in a period of ongoing societal turbulence, which included public fighting between Musk and the regulators, a multitude of securities lawsuits, cost reductions and layoffs throughout society. Two weeks ago, Tesla said it would close most stores and use the savings made to reduce the price of most cars by 6%. Last week, Tesla reversed the trend and announced that it would leave many stores open and raise prices by about 3%.

Musk has promised an easier Y model production ramp because it shares about three quarters of its components with Model 3 and would only need half of the sedan's capital expenditures.

The risk is "pretty low," Musk told badysts in January. Tesla would "most likely" build the Y model in the Tesla battery plant in Nevada, he said.

However, the Y model, like all Tesla models, has already experienced pre-production delays. Suppliers were initially informed that the production of the vehicle would begin in November 2019, sources told Reuters last year.

In October, Musk said that "the Y model had made significant progress" and that he had approved the prototype for production in 2020. In January, he stated that Tesla had ordered the tools needed for the construction of the car.