Tesla Gears Up for Model Y Unveiling
QUEST: Hello, I'm Richard Quest. There's more "Quest Means Business" in just a moment. When Elon Musk completes the Tesla model lineup, he's teasing with the Model Y and the SpaceX makes history. Investors look to the heavens for returns. As you and I continue together tonight, this is CNN, and on this network the facts always come first. The Venezuelan opposition leader, Juan Guaido has returned to his country despite threats from the government to arrest him. Thousands of people turned out at the Caracas Airport to meet the man who has declared himself the Interim President. Guaido is calling for more anti-government protests this week. A U.S. House Committee has launched a sweeping investigation into President Trump's administration campaign, business and more. It is demanding documents from 91 people and various entities including Mr. Trump's two adult sons. The President calls it a political hoax. And staying in the U.S., a U.S. Federal judge has ruled against lawyers for a U.S.-born ISIS bride who wanted an expedited decision on whether she can return to America. The Trump administration is trying to keep her out, the judge says there's no immediate proof that she's in any immediate danger and there's no need to speed up the case. Elon Musk is bringing sexy back or at least that's the way it looks, by attaching a date to unveiling his new Tesla. The model so far, you have the "S", the 3 backwards, the X, and soon the Y. This is the only photo we have so far. Musk says the Y will be about 10 percent bigger than the 3 and cost more about 10 percent. He'll show the car next Thursday in Los Angeles. Paul La Monica joins me now. Now, I need a bit of -- I need a bit of a tuition here, Paul, because the car he's talking about -- now, is this the same -- he said it's going to be 10 percent bigger than the 3. Is this the same 3 that he told us at only 35,000 was going to be almost impossible to make?</s>PAUL LA MONICA, CNN BUSINESS REPORTER: That is a great question. Obviously, he has talked about how it's going to be difficult for Tesla to keep making that model 3 at that affordable $35,000 price. But you know, we now know that they are unfortunately going to be making some layoffs in order to get that model 3 out there. They're going to be only doing online orders for these cars. So Tesla has made a lot of changes in order to get that cheap, if you will, model 3 to be something viable for the company. Now that model Y, if you say it's a 10 percent premium to the model 3, I guess that would start at about, you know, $37,500 or $38,500. So we'll see just whether or not it takes Tesla a long time to produce that Y at that price, or if they're going to start selling Y with custom features that are more expensive first.</s>QUEST: Why are they doing the Y?</s>LA MONICA: Oh, I think Tesla realizes that they need to have more vehicles in production if it's going to be a mass market car company. They have obviously done well on the luxury side with the model S and the model X Crossover. But in the same way that the model 3 is the quote, unquote, "affordable sedan", now you have a more affordable SUV with the model Y. And I think Tesla has aspirations to be a major auto company along the lines of GM, Volkswagen, Toyota, and many other global giants.</s>QUEST: How much of their lunch has already been eaten?</s>LA MONICA: I'm sorry?</s>QUEST: How much of their lunch has already been eaten by</s>GM -- LA MONICA: Yes --</s>QUEST: And Ford and Chrysler?</s>LA MONICA: No, that is a great question. Obviously, there have been concerns that Tesla has already maybe been too late to the game with regards to affordable electric cars. Because you have GM and the Bolt, you have the Volt, you also have Nissan and the leaf. There are a lot of companies that are making cheaper electrical cars, including in China where there's a company called NIO that's very hot right now, that is doing extremely well and possibly taking share from Tesla in China.</s>QUEST: We talked about that company when they IPO'd on the New York Stock Exchange a few months ago. Good to see you, Paul --</s>LA MONICA: Thank you --</s>QUEST: Paul La Monica, thank you. As we continue, Tesla's model Y seems low tech compared to Elon Musk's next trick. His rocket company docked a ship at the ISS. It's a milestone in the private race to space, investors are watching carefully.