Tesla is about to welcome its newest member to the family when the Model Y makes its long-awaited debut this week at the company’s L.A. design studio. The Model Y’s arrival adds another model to Tesla’s growing lineup of electric cars. The crossover is expected to slot between the entry-level Model 3 and the larger, more expensive Model S and Model X. Detailed specs will be revealed during the debut, but this early, there’s already growing buzz that the Model Y could turn into Tesla’s most popular model so far. That’s what happens when you’re a crossover that’s tipped to fetch a rather inexpensive price tag. For a number of reasons, the Tesla Model Y has the makings of a successful new offering for Tesla. Let’s take a look at some of those reasons.

The 2020 Tesla Model Y Should Feature a Sexy Design

Tesla Model Y
Tesla

Tesla’s have always looked good. The Model S commands an unmistakable presence on the road. The same thing goes for the Model X. Now, I haven’t seen the Model 3 out and about just yet, but based on its design, it’s easy to identify it as a Tesla, too. See, that’s one of the things I like about Tesla. The automaker’s models all look clean and sharp. They’re attractive without trying hard to be. You can spot one anywhere, and you immediately know that it’s a Tesla. That’s a credit to the company’s designers. They created a striking design language that doesn’t overstep its bounds. There are no useless creases, and there's nothing fake. What you see is a vehicle that looks properly groomed. I say that because I don’t expect anything less out of the Model Y. Based on teaser images, it wouldn’t surprise me if the Model Y looks a lot like the Model X, albeit smaller in profile to fit into the Model 3’s architecture. Part of what has made Tesla successful is resisting to go overboard when it doesn’t need to. We see that in the designs of its vehicles. There’s room to go a little crazy, but why ruin the whole thing over something that probably doesn’t fit into the overall aesthetic puzzle.

The 2020 Tesla Model Y Will Be Sold Outside of Traditional Dealership Networks

While most automakers today rely on dealership networks to move their inventory, Tesla has never taken that route. Instead, the electric car maker created a “straight-to-buyer” business model that afforded it control over customer experience. Not only does this setup save Tesla money in the long run, but it also strengthens the brand’s image to consumers. Granted, this setup doesn’t work for other automakers because of the size and the volume of vehicles they build. Tesla has also had to fight a number of states and their respective laws on the matter, not only to establish their presence in these areas but to keep some of their stores open in others. Ultimately, Tesla’s ability to leverage its size, reach, and brand recognition and create a model that has worked for the company has been successful for the company. It worked for the Tesla Model S. It worked for the Model X. It’s working for the Model 3, too. Now it’s going to work for the Model Y.

The 2020 Tesla Model Y Comes at a Time When A Compact Electric Crossover is Needed and Desired

Our rendering of the 2020 Tesla Model Y shown here


We can give Tesla credit for a lot of things it has done in the auto industry this decade, but lost in all the acclaim the company has received is the fact that it has timed its model releases perfectly. The Tesla Model S was launched in 2012, a time when premium electric cars were still thought of as an afterthought by industry titans. Tesla flipped that narrative, forcing a lot of automakers to catch up. Fast forward three years later and the Model X arrived just as the crossover and SUV segments started to reach no-turning-back popularity. The Model 3 arrived at a curious time, but the fact that it was a more affordable version of a Tesla was enough to drown out the declining popularity of sedans. Now, the Model Y is here to build on the success set by the Model X and round out Tesla’s electric crossover/SUV lineup. Tesla has managed to remain ahead of the curve by timing the launch of its models perfectly. That’s not a coincidence. That’s excellent product planning.

Tesla Still Holds Domination Over the Electric Crossover/SUV Market


To be clear, the electric SUV market has grown since Tesla launched the Model X in 2015. Models like the Mercedes EQC, Jaguar I-Pace, and Ford Mach-E are either on the market or will hit the market soon. But make no mistake, Tesla still holds court in this segment, in large part due to the success and popularity of the Model X. Imagine what kind of attention the Model Y will receive when it arrives. Combine the popularity of crossovers with the growing affection for electric cars, and it’s hard to imagine the Model Y not raking in the moolah for Tesla. Rival electric crossovers and SUVs could give the Model Y a run for its money, but the flip side of that narrative could be just as true. Once the Model Y arrives, it could strengthen Tesla’s stranglehold in the segment. Don’t sleep on that possibility.

The 2020 Tesla Model Y Doesn't Have a Lot of Competition...Yet

The Model Y's Biggest Competitor - the 2020 BMW iX3 shown here


Depending on when it launches, the Tesla Model Y could have a big advantage in its specific segment. Since it slots in as a car-based crossover, the Model Y’s competition could include models like the BMW X3 and the Acura RDX. The big difference is that the Model Y is electric while the others are not. Sure, the segment will soon be populated by like-minded EVs — the BMW iX3 is coming in 2020 — but if Tesla can launch the Model Y before the iX3 arrives, it could eat up most of the pie before the others even get the chance to sit at the table. This goes back to what I was talking about with regards to Tesla’s impressive product planning. The automaker knows that if it delayed the launch of the Model Y any longer, it would enter a market that would be more populated than what it is today, or even for the next months. Now that it’s about to launch, Tesla could have the first crack at that segment, and reap all the spoils that come with being the earliest bird.

The 2020 Tesla Model Y Will Feature the Most Modern Technology Available

Interior of the 2016 - 2019 Tesla Model X shown here


This is a speculative point, but if we know Tesla the way we think we do, the Model Y will feature the latest technology available to the company. That’s just what Tesla does. Autonomous driving, for example, could make its way to the Model Y. Tesla is expected to roll out a fully autonomous driving system next year, and while there’s been no word on which model is going to receive it, there’s a good chance that the Model Y will get in on that action - even if it's offered as an option. Autonomous driving technology is just one example. The Model Y will also have the same new battery technology as the Model 3. Other tech features are expected, too. Touchscreen-focused dashboards? Check. Over-the-air-updates? Ditto. Driver-assistance features? Yes, sir! We’ll know more about what these features are when Tesla launches the Model Y in a fortnight, but you can be sure that the company’s newest baby is going to be loaded to the brim with whatever new technology Tesla has at its disposal.

Tesla Has Streamlined Its Production Process, So the 2020 Model Y's Initial Production Should be Nice and Smooth

2018 Tesla Model 3 Shown here


Tesla found an inventive way to sell the Model 3: it targeted the highest-spending buyers first before it catered to people who are, for lack of a better phrase, on a budget. Not only did it drive up hype surrounding the sedan, but it also gave those who are on a budget enough time to save up and buy a Model 3 on their own. This benefits all parties concerned. It benefits Tesla because it showcases the very best of what the Model 3 could do from the start. It benefits the spenders, too, because they can get first dibs on a car that others may not be able to afford yet. It also benefits production because if high-spec models are launched first, Tesla isn’t emboldened to roll out a wide list of options for the crossover from the very getting. This saves Tesla a lot of money and, more importantly, it saves the company a lot of time in terms of the model’s entire production process. More affordable versions will be available later on, but that’s only when Tesla has already established the Model Y in the latter’s specific segment.

The 2020 Tesla Model Y Won't Have Tons of Electric Range but It'll be Enough For Long Hauls

Chassis of the 2018 Tesla Model 3 shown here


This probably isn’t a clear-cut example of why the Tesla Model Y will succeed, but we appreciate the honesty nonetheless. Of Tesla’s entire lineup, the Tesla Model Y will likely have the lowest range. That’s largely due to the crossover having the same battery as the Model 3. That battery returns a range of about 220 miles on the Model 3. Long range models of the sedan come with a battery that can go for up to 325 miles, and between those two figures is the mid-range model that’s rated at 264 miles. Elon Musk already said that the Model Y will have “slightly less range for the same battery.” There’s no point thinking it’s going to have more. Besides, it makes sense for the Model Y to carry a lower range because the crossover is heavier than the sedan. That means that it’s going to require more power, and requiring more power saps the battery juice a little faster. All of this is an inexact science, but I trust the words of Musk, at least in this case. Still, if the Model Y can boast a base battery range of 200 miles, a mid-level range of 240 miles, and a top-of-the-line range of about 300 miles, that’s a huge coup for the crossover.

The 2020 Tesla Model Y Should Feature a Starting Price in the $40,000-$45,000 Range


At the end of the day, the Tesla Model Y isn’t going to sell if it’s priced higher than most people expect. We can talk about technology, innovation, brand appeal, and whatever other factors go into the purchasing process, but unless a vehicle is priced reasonably, it’s going to collect dust in dealerships or, in Tesla’s case, its own stores. Tesla knows this, and while pricing for the Model Y has yet to be revealed, CEO Elon Musk has said that it will cost around “10-percent more” than the Model 3. Considering that the base Tesla Model 3 is priced at around $35,000, expect the Model Y’s price to start at around $40,000 to $45,000 depending on what kind of electric powertrain it has. That’s a starting price point that’s going to appeal to a lot of buyers, particularly those who are looking for a crossover or SUV that won’t end up costing them $50,000 or so. We can talk about design, performance, and appeal all we want. Ultimately, a vehicle’s price dictates whether it sells or collects dust.

The 2020 Tesla Model Y is, well, a Tesla


Tesla has been caught up in so many controversies that it’s hard to keep up with all of them. Likewise, Elon Musk has been known to ruffle some feathers with his words and actions. But, even with these perceived missteps, Tesla has risen to the top of the auto industry because it’s accomplished what few thought it could: it has delivered on its promises. Sure, Musk and the company have no abject understanding of time and deadlines, but none of that has mattered in the big picture. There’s a reason why a lot of automakers look at Tesla and see a threat to their business. The electric automaker has done right by the industry since it launched the Model S back in 2012. Now that it’s the Model Y’s turn in the spotlight, you can be sure that a lot of people will gravitate towards it simply because it’s a Tesla. That’s the kind of cache that no amount of money can buy.

Further Reading

Read our full review on the 2020 Tesla Model Y.

Read our full review on the 2017 Tesla Model X.

Read our full review on the 2018 Tesla Model 3.