Elon Musk-led Tesla is still struggling to ramp up production of the mass-market Model 3 car, but the company doesn’t want Model 3 woes to affect its future plans. Sources familiar with the matter told Reuters that Tesla is planning to start Model Y production by November 2019. Automotive component suppliers have received a Request for Information (RFI) from the EV maker about Model Y parts.
According to Reuters, the Model Y production will take place at Tesla’s existing facility in Fremont. The company is also setting up a factory in China. But the China plant would be able to roll out the first Model Y in 2021 or later, Reuters noted. Two sources told the publication that suppliers expect Tesla to produce 500,000 Model Y units per year in the United States. The China factory would produce the vehicles in smaller quantities, probably tens of thousands, to meet the local demand and export to neighboring countries.
Tesla has started accepting preliminary bids for supplier contracts on the compact SUV crossover. Without revealing much about the Model Y program, the company told potential suppliers that the vehicle would be built at the Fremont plant starting November 2019. Automakers tend to choose parts suppliers for a new vehicle about 2-3 years before it enters production.