Tesla dives into one of the hottest auto segments with the long-awaited debut of its Model Y crossover utility Thursday night.
div > div.group > p:first-child"> Tesla is about to dive into one of the hottest segments in the automotive market with the long-awaited debut of its Model Y crossover utility vehicle at its design studio in Los Angeles on Thursday night.
Crossovers, which generally combine a roomier SUV body on top of a sedan frame, are one of the fastest growing segments in the automotive industry. Customers increasingly want taller vehicles that are easier to get in and out of and offer flexible storage. This should also be Tesla's easiest vehicle to produce, Brauer added. Selling an SUV or crossover often allows an automaker to repackage a significant chunk of the parts it uses for cars in a higher-priced package, allowing it to rake in more money while streamlining costs.
That said, Tesla faces a few challenges some investors say stand to cut into demand for its vehicle. A $7,500 federal tax credit for Tesla buyers was halved beginning Jan. 1 and there's a crop of new competitors hitting the market over the next two years.
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