Tesla Speeds Model Y Timeline and Extends Range, Boosting Shares

(Bloomberg) -- Tesla Inc. said it started ramping up production of the new Model Y crossover SUV this month and that deliveries will begin by the end of the quarter, an acceleration of the timeline that helped send shares higher in after-hours trading.

And in even more encouraging news for potential buyers, the company also said Wednesday it has increased the Model Y’s range, a key metric of electric-vehicle performance. Shares rose about 6.5% after the close of regular trading.

“Due to continued engineering progress of the Model Y all-wheel drive (AWD), we have been able to increase its maximum EPA range to 315 miles, compared to our previous estimate of 280 miles,” Tesla said in its fourth-quarter earnings release. “This extends Model Y’s lead as the most energy-efficient electric SUV in the world.”

Tesla currently makes the Model S, Model X and Model 3, but Chief Executive Officer Elon Musk has said he expects the Model Y to outsell the other three models combined.

To contact the reporter on this story: Dana Hull in San Francisco at dhull12@bloomberg.net

To contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Kevin Miller

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