Tesla Model Y Deliveries Imminent: Time for Traditional Luxury Brands to Panic?
[March 16, 2020]
Those who put in reservations for a Tesla Model Y crossover are reportedly already receiving final deposit and delivery notifications, making it appear that Musk’s promise that Model Y deliveries would begin in Q1 2020 is indeed happening. This is the vehicle model that Tesla has been hoping for, and one their competitors likely dread. Among almost every brand – be it entry level, mainstream, or premium – crossovers are consistently among the best-selling models. Although Tesla already has a large crossover in its lineup, the Model Y is coming to market at a much more attainable price point that the falcon-winged Model X.
With a minimalistic interior, the Model Y (shown) takes its styling cues from Tesla’s Model 3.
Assuming most of the production wrinkles the company went through with the Model 3 are ironed out at Fremont, and add to the fact that the Model Y will eventually be made in China, Germany, and possibly the future Cybertruck plant, and you have the possibility of the production of more than 300,000 units a year globally once all of the plants are running at full steam. With an introductory starting price of more than $52,000 (for the mandatory dual-motor long-range Model Y at launch), it’s not competing in the same price realm as the chart-topping Honda CR-V, Toyota RAV4, and Ford Escape. But when you look at the entry-luxury market of the Lexus RX, Lincoln Corsair, Cadillac XT5, BMW X3, and Mercedes GLC, it’s right in the thick of it.
If the pattern follows the Model 3, the high-trim initial builds will soon be followed by lower-priced trims, which could bring the price point closer into the mainstream of the crossover market. And pricing is even more critical now that Tesla has depleted its allotment of federal tax credits.
Is the Model Y the dark horse in the affordable EV crossover SUV category?
I know now that I’ve outed myself as a proud Tesla owner and fan of the brand, so some of you may think that I’m letting my Tesla enthusiasm get the better of my reason. There’s a chance the Model Y might not be the runaway hit many are expecting, but all indications are that it will live up to expectations that it will be the brand’s best-selling model by a substantial margin.
So for all the critics, cynics, and naysayers who claim nobody wants electric cars, the Model Y may be the definitive vehicle to disprove the doubters. Now that BMW and Mercedes-Benz have delayed introduction of their EV crossovers to the U.S. market, Tesla will have a head start on cornering the mid-premium EV crossover market. Will there be many buyers left once the EQC and iNEXT come to market? The next few years will tell the tale.
(Images courtesy Tesla)
Follow us on Google News and like us on Facebook!
