According to a letter to shareholders, reported on by TechCrunch, Tesla will begin producing a Model Y SUV by the end of 2020.
The new SUV will be produced at Tesla’s Gigafactory in Nevada, and should incur substantially lower costs than the Model 3 line – due to sharing a platform and 75% of its components with the Model 3.
Tesla CEO Elon Musk also predicts that its sales volume will exceed that of the Model 3.
“This year should be a truly exciting one for Tesla,” said the letter.
“Model 3 will become a global product, the profitability of our business should become sustainably positive, our new Gigafactory Shanghai should start producing cars, and we will start tooling for Model Y production.”
Tesla has not yet released a prototype for the Model Y, however.