Tesla Model Y deliveries begin, meeting expectations on the crossover


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 has begun deliveries for its Model Y crossover SUV, the company announced on Twitter Monday, matching analyst expectations on timing.

Tesla’s announcement comes as many companies are being forced to revise their product timelines, and shift their manufacturing plans as the COVID-19 pandemic shuts down normal business operations around the world.

The accomplishment marks a win for Tesla, which has previously fallen short of self-imposed, start of delivery deadlines. Users have posted images and comments to Tesla Motors Club, a major online forum for Tesla owners, indicating that they have received their Model Y vehicles, or scheduled deliveries soon, even amidst the pandemic.

Tesla CEO Elon Musk told shareholders on the company’s third-quarter earnings call that Tesla was “ahead of schedule on Model Y preparations in Fremont, and we’ve moved the launch timeline from fall 2020 to summer 2020. There may be some room for improvement there, but we’re confident about summer 2020.”

Deutsche Bank analysts wrote in December that Tesla was poised to begin Model Y deliveries in the first-quarter of 2020, ahead of Musk’s initial projections. While Tesla has boasted about reservations for its Cybertruck, it has never disclosed deposits, or order book numbers, for the Model Y.

The seven-seat version of the Model Y is not expected to be available until 2021, according to Tesla’s website. The lower-cost “standard range” version of the Model Y, is not expected to be in production until early 2021, the site also notes.

Tesla’s stock continued to slide amid a broader coronavirus-related sell-off. The stock was down about 16% in the afternoon.

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Source : CNBC