TEMPO.CO, San Francisco - Tesla Inc unveiled its Model Y electric sports utility vehicle on Thursday evening in California, promising a much-awaited crossover that will face competition from European carmakers rolling out their own electric rivals.
Chief Executive Elon Musk said the compact SUV, built on the same platform as the Model 3, would first debut in a long-range version with a range of 300 miles priced at about $47,000.
A standard version, to be available sometime in 2021, would cost about $39,000, he said.
Musk unveiled the car at a small event at Tesla's design studio in Hawthorne, outside Los Angeles, that was streamed online.
Small SUVs are the fastest-growing segment in both the United States and China, the world's largest auto market, where Tesla is building a factory, making the Model Y well positioned to tap demand.
Tesla has enjoyed little competition thus far for its sedans, but competition for electric SUVs is heating up as Tesla tries to master a new set of economics from the luxury line that made its reputation.
On Thursday, rating company Fitch warned that, despite Tesla's early lead, "incumbent carmakers have the ability to catch up ... thanks to their capacity to invest and their robust record in product management."
Read: Tesla to Close Many Stores as $35,000 Model 3 Goes on Sale
Tesla's targeted volume production date of late 2020 would put it behind electric SUV offerings from Volkswagen AG's Audi, Daimler AG's Mercedes-Benz and BMW.
Shares of Tesla are down 24 percent from an August high of $379.57, when Musk tweeted that he was taking Tesla private.
That plan - later scrapped - ushered in a period of turmoil at the company, from Musk's public battles with regulators, a flurry of securities lawsuits, cost-cutting and layoffs.
Tesla, two weeks ago, said it would close most stores and use savings to cut the price of most cars by 6 percent. But last week, Tesla reversed course and said it would leave many stores open and raised prices back by about 3 percent.
Musk has promised an easier production ramp of the Model Y, since it shares about three-quarters of its parts with the Model 3 and would need only half the capital expenditures of the sedan.
The risk is "quite low" Musk told analysts in January. Tesla would "most likely" build the Model Y at Tesla's battery factory in Nevada, he said.
Still, the Model Y, like all Tesla's models, has already seen pre-production delays. Suppliers were originally told that production would start in November 2019, sources told Reuters last year.
In October, Musk said "significant progress" had been made on the Model Y and that he had approved the prototype for production in 2020. In January, he said Tesla had ordered the tooling needed to build the car.