Production of the Model Y is still on track for fall 2020.
Tesla unveiled the Model Y back in March as the automaker's new affordable electric crossover, but the production location wasn't announced at the time as Elon Musk has been debating whether it will be produced in California or Nevada.
Currently, Tesla manufactures the Model S, Model X and Model 3 in Fremont, and produces battery packs and drive units at its gigafactory near Reno, Nevada. However, Elon Musk has now confirmed during Tesla's Q2 2019 earnings call that preparation for the Model Y's production is currently underway in Fremont. Production of the Model Y is also still on track for fall 2020.
"Preparations for Model Y production in Fremont began in Q2," Musk confirmed. The Model Y will also have a major advantage over the Model 3, as Musk believes it will be more profitable than the electric sedan.
"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," Musk said. "Additionally, we are making progress managing Model Y cost with only a minimal cost premium expected over Model 3." Musk also cited the high demand for SUVs and higher selling prices as reasons why the Model Y will be a more profitable product than the Model 3.
When it goes on sale next year, the Model Y will start at $40,000 for the 230-mile range model, which will do 0-62 mph in 5.9 seconds. The more expensive Long Range model will cost $48,000 and feature a Dual Motor All-Wheel Drive system and a longer range of 280 miles. 0-62 mph will take 4.8 seconds. The range-topping Performance Model, on the other hand, will start at $61,000, last up to 280 miles on a single charge, and hit 0-62 mph in 3.5 seconds.