Channel-changing Tesla Model Y Debut Tonight

With tonight’s splashy California reveal of the upcoming Model Y crossover, Tesla CEO Elon Musk hopes to achieve two things: positive press, and an avalanche of deposits. It would be a change from the past several weeks, in which an assembly line of undesirable headlines made it appear that a green monument was in danger of toppling.

While pricing and specs should be revealed tonight, J.D. Power thinks it knows what Tesla fans will pay.

The Model Y, based on the Model 3 sedan and boasting a body about 10 percent larger than its sedan sibling, will probably cost 10 percent more than the smaller car, Musk tweeted last week. Assuming the CEO used the Standard Range Model 3 ($35,000) as a benchmark, that would place the starting price closer to the $40k mark.

J.D. Power anticipates a higher starting price. In a report released ahead of the model’s reveal, the company explained that the Model Y sits in a sweet spot in the American market — “More than half (52%) of those who bought a vehicle in the $30,000-$50,000 price range purchased an SUV.” The company figures a $45,000 starting point, before tax rebates. The model’s price ceiling is probably in the area of $85,000, J.D. Power said.

“In 2018, 1.4 million SUVs were sold in the $40,000-$90,000 range. This means if Tesla captures only a modest portion of this segment, it will deliver significant sales growth.”

In today’s market, the sales potential of the crossover tops that of its sedan stablemate, J.D. Power said.

Of course, all of this hinges on Tesla getting the model into production. A report last week, citing Tesla supplier sources, suggested the automaker has only just started figuring the operation out. Its Model Y production site, the report claimed, is still a question mark.

[Image: Tesla]