Indilens ! Live Daily News on India Insights of India
[ad_1]
- Tesla expects its upcoming Model Y SUV to be more profitable than its Model 3 sedan, the electric-car maker said on Wednesday in its second-quarter earnings letter.
- The company cited shared components and manufacturing designs, a large market for SUVs, and higher expected selling prices as reasons why the Model Y could produce larger profits than the Model 3.
- Production for the Model Y is expected to begin in fall 2020.
- Visit Business Insider’s homepage for more stories.
Tesla expects its upcoming Model Y SUV to be more profitable than its Model 3 sedan, the electric-car maker said on Wednesday in its second-quarter earnings letter.
The company cited shared components and manufacturing designs, a large market for SUVs, and higher expected selling prices as reasons why the Model Y could produce larger profits than the Model 3. Production for the Model Y is expected to begin in the fall next year.
Read more: Tesla’s second-quarter earnings fall short of Wall Street expectations
“Due to a significant overlap of components between Model 3 and Model Y, we are able to leverage existing manufacturing designs in the development of the Model Y production facilities,” Tesla said in the earnings letter.
“Additionally, we are making progress managing Model Y cost with only a minimal cost premium expected over Model 3. Due to the large market size for SUVs, as well as higher ASPs, we believe Model Y will be a more profitable product than the Model 3,” the company added.
The Model Y will have a maximum range of 300 miles and the ability to accelerate from 0 to 60 mph in a minimum of 3.5 seconds, depending on the trim, Tesla said. Like Tesla’s Model X SUV, the Model Y will be able to seat seven people.
During Tesla’s second-quarter earnings call, CEO Elon Musk said the Model 3 and Model Y were more important to the company’s future than its most expensive vehicles, the Model S sedan and Model X SUV.
“There’s probably a bit too much focus on S and X,” Musk said. “The story of Tesla in the future is Model 3 and Model Y.”
Tesla reported a larger-than-expected loss for the second quarter, losing $1.12 per share (versus an expected loss of $0.31 per share) on revenue of $6.35 billion (versus an expected $6.45 billion). The losses came as the company set a record for the number of vehicles delivered in one quarter.
Have you worked for Tesla? Do you have a story to share? Contact this reporter at mmatousek@businessinsider.com.
- Read more:
- A Tesla driver parked his Model 3 on a stranger’s lawn in Florida and left the car plugged in at the house for 12 hours
- Elon Musk’s Tesla earnings could go from $0 to $2.3 billion, and this jump shows how complicated CEO compensation has become
- Tesla bailed on its harassment lawsuit against a short seller after refusing to provide evidence of its claims
- A Tesla driver ran a red light and slammed into 2 pedestrians, killing one of them in San Francisco, police say
SEE ALSO: A major Wall Street analyst recently suggested that Tesla is ‘strategically undervalued,’ but is that true?
Join the conversation about this story »
NOW WATCH: Why Apple’s Mac Pro ‘trash can’ was a colossal failure
[ad_2]
