Tesla is targeting the month of November next year 2019 as the start of production for its Model Y sports utility vehicle, with production in China will begin two years later.

The production of Model Y in China in two years had shed some light on the electric vehicle maker’s next project that could tax its resources and capacity.

Tesla CEO Elon Musk is reportedly accepting preliminary bids for supplier contracts on the Model Y, a compact crossover companion to the Model 3 sedan.

The automaker has given suppliers slight details about the program and had not provided a production time frame, but has now indicated the vehicle would begin to be built at its Fremont, California plant in November 2019.

The New Model Y

The new Model Y details show that Tesla is pushing ahead with plans to build a new vehicle even as it struggles to produce the Model 3, which launched in July.

Despite initially attracting about 500,000 advance orders in the form of refundable deposits, the sedan’s launch has been plagued by delays and manufacturing bottlenecks, putting off Tesla’s anticipated revenue stream and aggravating a cash crunch for the money-losing company.

Earlier this month, Tesla tried to reassure the investors, saying its weekly Model 3 output had doubled during the first quarter and that production rates would accelerate through the second quarter to 5,000 units per week or about 250,000 vehicles per year.


Model Y Production

Competitive bidding is a crucial early step in the difficult process of the company. After it revealed its plans, suppliers started to compete based on factors including cost and technology.

Tesla issued to suppliers a “request for information,” or RFI, which gives a directional view of what will be necessary.

With a new car model, automakers usually choose parts suppliers two to two-and-a-half years before the start of production. At about one and half years away, a start date on November next year for the Model Y would be considered “aggressive, but possible,” said one of the sources.

A shorter timeline is potentially feasible, the source said, as the Model Y will be built on the same platform as the Model 3.

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