• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 19 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 7 hours Starvation, horror in Venezuela
  • 14 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 1 day Pakistan: "Heart" Of Terrorism and Global Threat
  • 15 hours Saudi Fund Wants to Take Tesla Private?
  • 1 day Venezuela set to raise gasoline prices to international levels.
  • 1 day Are Trump's steel tariffs working? Seems they are!
  • 2 days WTI @ 69.33 headed for $70s - $80s end of August
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 8 hours Why hydrogen economics does not work
  • 2 days Corporations Are Buying More Renewables Than Ever
  • 7 hours China goes against US natural gas
Gulf Coast Refineries Process Record Volume Of Crude

Gulf Coast Refineries Process Record Volume Of Crude

U.S. refiners are churning out…

Crude-By-Rail Could Save The Permian Boom

Crude-By-Rail Could Save The Permian Boom

Crude-by-Rail (CBR) has been a…

Tesla’s Model Y To Launch In November 2019

Tesla Model Y

Despite the troubles around the ramp-up of its Model 3 production, Tesla is already eyeing the launch of its next model, the Y, in November next year, two unnamed sources told Reuters.

This will be the carmaker’s first sports utility vehicle, and the company is currently accepting preliminary bids from suppliers. This is yet again a demonstration of Tesla’s aggressive approach to deadlines.

As Reuters notes, the competitive bidding process for car part suppliers usually takes between two and two and a half years. If, however, the start of production for the Model Y is slated for November 2019, this gives bidders little more than a year and a half to come up with their best offer.

Yet this time the shorter timeframe might just work, one of the sources said, because the Model Y will be assembled on the same platform as the Model 3. This will only be the initial production, however, as the factory in Fremont is not large enough to handle the annual target of one million Model Ys Tesla has set.

Capital spending on the Model Y will begin in late 2018, and observers are wondering if that won’t prompt Tesla to raise fresh funds given its unenviable cash position right now. Elon Musk said last month that Tesla does not need any more cash injections this year. But some analysts, notably Moody’s, said the carmaker would need more cash—and soon. Moody’s estimated its needs at US$2 billion, after last year Tesla went through US$3.4 billion.

Some are wondering if this is the best time to work on yet another model before production of the Model 3 has ramped up. Others are questioning the 1-million Model Y target, with Reuters’ sources suggesting that the suppliers that will bid for the project are probably estimating actual annual production targets of half that number.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • T T on April 12 2018 said:
    According to my count, this will be their 2nd SUV after the X.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News