Tesla is set to unveil its latest offering, a crossover sport utility vehicle version of the Model 3 sedan called the Model Y. Soon after, the company will find out whether the chaos surrounding Tesla and Musk has diminished the enthusiasm of its following
version of the Model 3 sedan called the Model Y. Soon after, the company and its backers will find out whether the chaos surrounding Tesla and Musk has diminished the enthusiasm of its cult-like following.
“I don’t think their brand is in the same place as when they announced the Model 3 in 2016,” said Jessica Caldwell, senior analyst at Edmunds. “Not having a smooth production, having to lay off people, having to close stores, those are real problems. I think people see them with a more realistic lens today in 2019 than they did in 2016.”
The Model Y is important for Tesla’s popular appeal. The SUV market in the U.S. and around the world has increased dramatically in the last five years — especially the market for smaller crossovers — and tapping into that is crucial for today’s automakers, said Karl Brauer, executive publisher at Kelley Blue Book.
Tesla’s production challenges early on with the Model 3 are well documented. The company grappled with Daniel Ives, managing director of equity research at Wedbush Securities, said in a note to clients Wednesday that he expected Model Y prices to range from the high $30,000s to $50,000, depending on features.
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