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

Mark Matousek

Mar 7, 2019, 22:06 IST

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

Tesla CEO Elon Musk.

Tesla has not yet decided where it will build its upcoming Model Y crossover SUV, which it will unveil on March 14, CNBC reports, citing six current and former employees.
Tesla executives are reportedly 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 only reached out to their companies about assisting with Model Y production after Tesla CEO Elon Musk tweeted the date of the Model Y reveal on Sunday.
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 yet decided where it will build its upcoming Model Y crossover SUV, which it will unveil on March 14, CNBC reports, citing six current and former employees.

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

Two employees of Tesla vendors told CNBC that Tesla only reached out to their companies about assisting with Model Y production after Tesla CEO Elon Musk tweeted the date of the Model Y reveal on Sunday.

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 the Gigafactory. Tesla also says in the letter that it intends 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 will 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 per week at the Nevada Gigafactory, known as Gigafactory 1, by December 20, 2020, and 5,000 Model Ys per week at its upcoming 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 that 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 will have some features that are not in the Model 3, like a third row of seats, an IP Riser, and a center console riser.