We Won't See a Tesla Model Y For "A Few Years," According to Elon Musk

The brand's compact SUV is still a ways out following the release of the Model 3.

Elon Musk

Tesla is getting ready for a boom in volume once their Model 3 hits showrooms. The brand's first widely affordable vehicle is slated to skyrocket sales across the board when it is released sometime near September, and Elon Musk doesn't want it to stop there. He teased the idea of a Model Y back in 2015, saying that the electric compact SUV is the next step for Tesla. He recently released on Twitter that we won't see a Model Y for "a few years", allowing time for development of the Model 3 platform. Once the 3 has become well established, the Model Y will only compound the amount of sales for the brand according to Morgan Stanley analyst Adam Jonas.

Specifics about the Model Y are scarce. Musk didn't reveal many details on the future product, though we expect it to follow an ethos similar to that of the Model 3. He announced earlier in the week that the forthcoming models will be more affordable and less high tech, allowing them to slot in at pricepoints close to that of the Chevrolet Bolt EV. 

Tesla wants to wait on the Model Y for more than one reason. The obvious being that they want to push the success of the Model 3, but past that, they simply don't have the capacity yet. They're expecting to build 500,000 cars per year once the Model 3 comes into full swing, a much larger figure than they're used to. It'll take a lot of adjustment to attain that goal, so they'll surely need a bit more time if they want to introduce another top seller to the lineup.

"We believe the small SUV segment will eventually be the largest segment in the world across all OEMs," Jonas wrote. "We also expect Model Y to be at the center of an on-demand ride sharing service ('Tesla Mobility') due to its larger passenger compartment, luggage space, and modular seat configuration."

We aren't expecting more news on the Model Y for awhile. Tesla has plenty on their plate with finishing up the Model 3, so until then, sit back and watch.