Tesla has reportedly not decided where it will build the Model Y SUV

  • Tesla has not decided where it will build its Model Y crossover SUV, which it is expected to unveil March 14,CNBC reports, citing six current and former employees.
  • Tesla executives are said to be considering two locations for Model Y production: the automaker’s battery factory in Nevada and its vehicle assembly plant in California.
  • Two employees of Tesla vendors told CNBC that Tesla contacted their companies about assisting with Model Y production only after Tesla CEO Elon Musk’s Sunday tweet announcing the date of the Model Y unveiling.
  • Tesla declined Business Insider’s request for comment, but CNBC says the automaker directed it toward its fourth-quarter earnings letter from January, in which it said Model Y production would most likely occur at its battery factory.

Tesla has not decided where it will build its Model Y crossover SUV, which it is expected to unveil March 14, CNBC reports, citing six current and former employees.

Tesla executives are said to be considering two locations for Model Y production: the Gigafactory in Reno, Nevada – where the automaker makes batteries and drive units – and its vehicle assembly plant in Fremont, California. The Fremont option would reportedly involve merging the production lines for the Model S sedan and the Model X SUV.

Two employees of Tesla vendors told CNBC that Tesla contacted their companies about assisting with Model Y production only after Tesla CEO Elon Musk’s Sunday tweet announcing the date of the Model Y unveiling.


Read more:
Tesla says it will unveil the Model Y this month – here’s everything we know about the vehicle so far

Tesla declined Business Insider’s request for comment, but CNBC says the automaker directed it toward the carmaker’s fourth-quarter earnings letter from January, in which it said Model Y production would most likely occur at the Gigafactory. Tesla also said in the letter that it intended to begin volume production of the vehicle by the end of 2020.

During Tesla’s fourth-quarter earnings call, Musk reiterated the letter’s prediction that Tesla would most likely produce the Model Y at the Gigafactory.

“The Model Y, we think, most likely will be produced at Gigafactory, but that’s – unless we encounter some obstacle – that’s the default plan that we’re proceeding towards,” Musk said during the call.

Business Insider reported in December that Tesla planned to produce 7,000 Model Ys a week at the Nevada Gigafactory, known as Gigafactory 1, by December 20, 2020, and 5,000 Model Ys a week at its coming factory in China, known as Gigafactory 3, by February 2021.

A Tesla representative said at the time that documents viewed by Business Insider describing the production timeline were out of date.

The Model Y will be Tesla’s second SUV, after the Model X. Musk has said it will share about 75% its parts with the Model 3 sedan while being about 10% larger and more expensive than the Model 3. The internal Tesla documents reviewed by Business Insider said the Model Y would have some features absent from the Model 3, like a third row of seats, an IP Riser, and a center console riser.

Read CNBC’s full story here.

Have a Tesla news tip? Contact this reporter at [email protected].

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