Elon Musk shoots down U.S. regulator's complaint about his Tesla tweet

Lloyd Doyle
March 15, 2019

Since the SUV will be built using a majority of the Model 3's existing parts, that could make it easier for Tesla to get some production-ready vehicles out the door more quickly. Now, let's take a look at some recent updates related to Tesla CEO Elon Musk's legal battle with the SEC (Securities and Exchange Commission). The company has now announced last week that it would raise the prices for all of its vehicles by 3% after decreasing prices by an average of around 6%. The Model X comes in an $88,000 "Long Range" or $104,000 "Performance" packages.

Elon Musk had revealed that Tesla Model Y price is likely to be about 10% higher than the Model 3.

Musk's lawyers say that the correction tweet was unnecessary, since the original tweet on February 19th didn't violate his settlement.

Tune in to the event on Tesla's website on Thursday to find out details about the new vehicle.


"OK well played", Brownlee tweeted, prompting Musk to respond with a winking-face emoji.

Tesla has enormous expectations for its Model Y. Citing the fact that the midsized SUV segment is the most popular vehicle type in numerous major markets Tesla operates in, Musk believes the Model Y will be produced in higher volumes than the Model 3, he said during the company's fourth-quarter earnings call. Compact SUVs represent the largest segment in the United States, 50 percent larger than the next-largest segment.

It's against that backdrop that the Palo Alto-based company is about to add yet another project into the mix: The Tesla Model Y, an all-electric SUV. But its announcement also mentioned the Model Y, which shares the Model 3 platform.

Tesla is known to have missed production targets before, though, so there's a chance things may change. The automaker closed 10 percent of locations that didn't invite "natural foot traffic" and another 20 percent are under review. Hence, we expect Tesla Model Y to come out at $38,500 for the basic variant. But Tesla will likely introduce higher-priced versions of the vehicle before it brings to market the base model, just as it did with the Model 3. Musk corrected himself four hours later, saying that Tesla would indeed produce about 400,000 cars this year: "Meant to say annualized production rate at end of 2019 probably around 500k."But that correction was not enough for a federal judge, who gave Musk two weeks to explain why he should be spared from being held in contempt for violating the agreement with the SEC".

Other reports by Iphone Fresh

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