Elon Musk just announced that Tesla will reveal its Model Y SUV on March 14 in Los Angeles

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Tesla CEO Elon Musk.

• Elon Musk tweeted Sunday that Tesla would reveal its Model Y crossover SUV on March 14.
• The unveiling is planned for Tesla's design studio in Los Angeles, Musk said.
• Musk also said that the Tesla Model Y would cost about 10% more than the Model 3 sedan and achieve slightly less range.

Tesla CEO Elon Musk announced on Sunday that the company will reveal its Model Y crossover SUV at an event in Los Angeles on March 14.

Musk made the announcement on Twitter.

The event will be held at Tesla's design studio, located at SpaceX headquarters in Hawthorne, south of downtown Los Angeles.

The Model Y follows the Model 3, a compact sedan. The market has expected a Model Y unveiling for some time, and the March date makes sense, as Tesla has in the past revealed new vehicles around that time of year. The all-electric automaker pulled the cover off the Model 3 in April of 2016. (The Tesla Semi and new Roadster, however, were first shown in November of 2017.)

Read more: Tesla's biggest problem isn't Elon Musk's Twitter - it's a lack of real news

Tesla urgently needs a compact crossover to compete in this popular segment. In the US, sedan sales have entered what many industry observers and even some automakers consider to be a period of structural decline.

Tesla

The Model Y teaser image.

Consumers have said goodbye to the four-door and embraced crossover SUVs, which combine SUV versatility with car-like driving characteristics.

Musk added, also by tweet, that the Model Y would cost about 10% more than the Model 3, which is now available for order at a base price of $35,000. The Model Y, he said, would be 10% larger than the Model 3 and achieve slightly less range from battery back of the same size for both vehicles.

The Model Y, once its hits the streets, will fulfill a sort of inside-joke for Tesla: it's vehicle lineup will spell out "S3XY" with a Model S, Model 3, Model X, and Model Y.

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