Wall Street is warning Tesla's new SUV could 'cannibalize' its Model 3. Here's what analysts are saying about the Model Y.

"The question in our minds is how much does Model Y cannibalize Model 3? We suspect it could be significant as globally CUVs have become more popular than sedans," analyst Joseph Spak wrote in a note on Friday.

"Which begs the question, why show the vehicle now? We would have thought the reveal would have been closer to start of production. Will some potential M3 buyers wait?"

Still, the Model Y will likely be a more profitable vehicle than the Model 3, Spak said.

The firm reiterated its price target of $245 and "underperform" rating on the stock.

"While some have argued that the production of Model Y could potentially cannibalize Model 3 deliveries, in our opinion this is a smart and strategic move by Musk & Co. as they aim to further their leadership position in the EV market by now going after the hot SUV Crossover market," analysts led by Dan Ives wrote in a note to clients on Friday.

The firm had the opportunity to test the car, and Ives said they were "very impressed with the interior and the feel of the Model Y on the road as it did not drive like a crossover SUV and will be a major competitive advantage" when it does hit the road.

Wedbush reiterated its "outperform" investment rating and price target of $390.

"Although the Model Y is unlikely to be available to consumers until at least 2020, it will likely represent one of TSLA's most important models, as it caters to the currently very hot crossover market (in the US and globally)," analysts led by John Murphy wrote in a note to clients on Friday.

"However, it should be noted that all automakers are increasingly chasing the CUV segment and will be launching a slew of new models, which will likely drive an overcrowded market."

The firm reiterated its "underperform" rating and $225 price target on the stock due to its view that cash burn in the first half of this year will remain a challenge.

"Overall, we found the event somewhat underwhelming with no major surprises," Emmanuel Rosner, an analyst at the firm, said in a note to clients on Friday.

"The Model Y itself essentially is a crossover version of Model 3, with higher seating position and higher roof, but same seats, interior, powertrains, etc; it will be sold starting 2020 at a small price premium to equivalent Model 3s."

The unveiling is unlikely to detract investor attention away from "ongoing demand/margin concerns for Tesla's current lineup," he wrote.

Additionally, Rosner added that with first-quarter earnings and cash flow set to be "really weak," the stock could remain under pressure in the near-term.

The firm reiterated its "hold" rating and price target of $345.