When Tesla CEO Elon Musk unveiled the company’s “Master Plan, Part Deux” last month, he mentioned a future compact SUV and an all-electric self-driving bus. The rumor mill was quick to conclude that the compact SUV will be named Model Y. Now Elon Musk has confirmed that the SUV crossover is indeed Model Y, and that it will be based on the Model 3 chassis.

Tesla Model Y
Image source: Tesla Motors

Model Y rumored to cost slightly more than Model 3

Tesla will start selling the mass-market Model 3 EV in 2017. We can expect the Model Y to arrive sometime after that. It is rumored to be inspired by the Model X, but without the falcon wing doors. The Model Y is said to be priced slightly above the Model 3, which has a starting price of $35,000. Musk added that the Minibus would sit on the same chassis as the Model X SUV.

The Model Y will complete Tesla’s “S3XY” nomenclature. The other three are Model S, Model 3 and Model X. The Model 3 was supposed to be named Model E, but Ford threatened to sue Tesla as it owns rights to the Model E name. The California-based EV maker is expected to offer Model Y in the range of two-wheel and all-wheel drive powertrains. Responding to a Twitter user over the weekend, Elon Musk clarified that the company’s naming pattern may change after Model Y.

Tesla Minibus may be unveiled next year

The all-electric Minibus will transform the public transit in the future. “People density potential is surprisingly high,” said Musk. The driverless bus can drop you off right at your door. The Minibus is expected to be unveiled next year. Tesla is also working on a pickup truck that is said evolve into a cargo van to challenge the Mercedes Sprinter and Ford Transit.

Right now one of the biggest challenges before Tesla is to start deliveries of the Model 3 on time. The mass-market EV has received more than 400,000 pre-orders.