Elon Musk has big expectations for Tesla’s new small car.
The Tesla CEO gave the world a sneak peek at the brand’s next model during a shareholder event on Tuesday in Texas.
Musk said there are actually two new vehicles in the works that he predicted will combine for 5 million worldwide sales annually.
“This is just Elon’s guess, don’t sue me,” he joked.
The Model Y is a compact SUV. (Tesla)
Musk did not elaborate on when the new models would go into production or where they would be made, but Tesla is in the process of building a new factory in Mexico and Musk has said the company is looking to reduce future manufacturing costs by 50%.
One of Tesla’s innovations in this area is the use of mega-castings that replace dozens of parts. The Model Y built in Texas already features some of these types of parts and the upcoming Cybertruck will rely heavily on them. Musk has likened the process to stamping toy cars.
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“It will be a modest contributor to profitability, but it will be sick.”