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Tesla Model Y has a great advantage over the model 3



"Preparations for Model Y production in Fremont began in Q2," Musk confirmed. Model Y will also have a great advantage over Model 3, as Musk believes it will be more profitable than the electric sedan.

Due to a significant overlap of components between Model 3 and Model Y, we are able to exploit existing production designs in the development of the Model Y production plants, "said Musk. "In addition, we are progressing in handling Model Y costs with only a minimal cost premium expected over Model 3." Musk also cited the high demand for SUVs and higher selling prices as the reason why Model Y will be more profitable product than model 3.

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