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Elon Musk says Tesla's new Model Y SUV will outsell the Model S, Model X, and Model 3 combined

Mar 15, 2019, 11:49 IST

Tesla CEO Elon Musk jokingly motions to kick before introducing the Model Y at Tesla's design studio Thursday, March 14, 2019, in Hawthorne, Calif. The Model Y may be Tesla's most important product yet as it attempts to expand into the mainstream and generate enough cash to repay massive debts that threaten to topple the Palo Alto, Calif., company. (AP Photo/Jae C. Hong)Associated Press

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  • Tesla CEO Elon Musk said he expects the new Model Y SUV to outsell the Model S, Model X, and Model 3 combined.
  • "I think it will probably sell, probably do more Model Ys than (Model) S and (Model) X combined, most likely," Musk said.
  • While Musk remains optimistic about the vehicle, some on Wall Street have expressed concerns about the Model Y eating into sales for the Model 3.

Tesla CEO Elon Musk said he expects the new Model Y SUV to outsell the Model S, Model X, and Model 3 combined.

"I think it's really compelling. I'm confident that of any mid-sized SUV, it will be the one you want," Musk said at the Model Y unveiling event in Hawthorne, California, on Thursday evening, adding that Tesla would "probably do more Model Ys than (Model) S, (Model) X, (Model) 3 combined, most likely."

Tesla opened up orders for the long-range and Performance versions of the Model Y after the event. Customers can place their orders on the company's website for a deposit of $2,500.

Read more: The Tesla Model Y has staggering specs - but it isn't a major new design for Tesla

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While Musk remains optimistic about the vehicle, some on Wall Street have expressed concerns about the Model Y eating into sales for the Model 3.

In a note to clients earlier this week, Goldman Sachs analysts said that the Model Y could put further pressure on the Model 3.

"While the unveil of the Model Y could drive incremental reservations- given a much larger global market for crossovers than sedans - and help cash balances given likely deposit collection, this new product could further weigh on Model 3 demand as consumers decide to wait a little longer to purchase a Tesla crossover vehicle (a segment that has seen significant increases in demand across the major auto markets the past few years)," Goldman analysts said.

While Tesla saw a steady increase in Model 3 sales from October to December of 2018, the company saw a drop off in January and February of this year.

Tesla sold 17,750 Model 3s in the US in October and 25,250 in December. However, in January, the company only sold 6,500 Model 3 sedans in the US. That number dropped even further in February to 5,750.

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What to know about the Model Y

Tesla CEO Elon Musk views the new Tesla Model Y at its unveiling in Hawthorne, California on March 14, 2019.FREDERIC J. BROWN/AFP/Getty Images

Tesla is currently selling three versions of the Model Y SUV.

The long-range rear-wheel drive begins pricing at $47,000 before incentives and has a range of 300 miles per charge.

The dual-motor all-wheel drive will have a range of 280 miles per charge and begins pricing at $51,000 before incentives. The Performance model will also have a range of 280 miles, but will begin pricing at $60,000.

According to Tesla's website, the company plans to begin manufacturing these three versions late next year. But customers can place an order now on the company's website for a deposit of $2,500.

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Those looking to order the standard version of Tesla's Model Y will have to wait even longer for their SUV.

According to Tesla's website, the Model Y standard range version of the vehicle will begin production in 2021. Customers cannot yet place an order for this version of the vehicle.

The standard Model Y version will have a range of 230 miles per charge, a top speed of 120 miles per hour, and begin pricing at $39,000. The SUV will also be able to go from 0-60 mph in 5.9 seconds, Tesla says.

The Model Y SUV will seat five people, but two seats can be added for an additional cost.

NOW WATCH: Aston Martin's new fully-electric Lagonda could be the future of SUVs

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