Tesla is set to increase its electric vehicle lineup with a new small SUV, slotting under the Model X. Set to be called the Model Y, the new SUV is set to fill out the carmaker’s series that also includes the cheaper Model 3 and the first sedan, according to a report online.

Tesla Model Y: a compact SUV

This new report affirms that Tesla Inc. will introduce the Model Y in 2018. The car is expected to be a compact crossover that uses the Tesla Model 3 as a base. The cost of the vehicle is will likely be a bit higher than that of the economic sedan, which is supposed to be close to $ 37,000.

Elon Musk, Tesla CEO, claims that the car will use falcon wing rear opening like what are seen on the Model X. Tesla Inc. is also anticipated to offer full autonomous driving capability in this new vehicle, which will make the latest versions of Tesla's Autopilot system. The new car will use as many as eight cameras as part of this assistant system, in addition to a new type of forward-facing radar and 12 ultrasonic sensors intended to operate in all weather situations.

Model Y: a new model for 2018

The reported Model Y rests on the identical platform of Model 3 and may highlight the same falcon wing openings found on Tesla Model X. While the economic sedan is the priority for the company, the new car could show to be a complete goldmine for Tesla thanks to the increasing popularity of small SUV in the USA and the world.

The opening price of Tesla Model 3 is about $37,000, with the new Model Y supposed to be somewhat more expensive. Small crossovers are among the most sought-after car bodies in the United States, with practically all car producers selling at least one small SUV in their series. Experts suppose compact crossovers, which consume less and cost less than a normal SUV while producing drivers the same feel, are behind extraordinary car sales for crossovers and cars in general. In the end, investors expect the electric-car company to hit capital markets this year to support its expansion.