This will likely result in a lower price point for the Model Y, although no one can say for sure yet what the vehicle will cost.
Traders will be watching to see if Tesla can maintains its bullish momentum with the stock's RSI already at the overbought level of 73.4.
There will also be a new plant for the Model Y. The existing Gigafactory will supply battery packs and drivetrain for Model Y, but there's "just no room at Fremont, we are bursting at the seams", Musk said. It will be based on a new architecture created to reduce manufacturing costs and increase energy efficiency.
Tesla's goal to fill the nation's roads with electric cars has also made it think some more about infrastructure. Musk said Tesla's worker injury rate is actually 32 percent below that of the auto industry and getting better, due to changes such as having three working shifts instead of two, which has cut down on workers being exhausted and losing focus on the factory floor.
The first teaser of the new Tesla Model Y has dropped for the very first time, showing a dark silhouette of the front end.
Musk didn't doubt that injuries do happen at Tesla's factory, but said the company is making progress in reducing the number of employees who do get hurt while doing their jobs. Tesla made just 84,000 cars previous year. The first 200,000 Tesla Model 3 cars will get a $7,500 tax credit. Model S and Model X owners are already anxious about having to share Tesla's Supercharger stations with an influx of new cars. And while Tesla is promising to increase its network of stores and service centers by 30 percent this year, it began 2017 with just 250 service centers worldwide. According to Teslanomics, the average purchase price of the vehicle will be around $50,000 which is more than $42,000 average price predicted by Musk.
COMPETITION: Until now, Tesla has owned the market for fully-electric vehicles that can go 200 miles or more on a charge.
When it comes to Tesla Inc., perception is reality, and fundamentals and profitability will be "largely ignored" until next year.
Earlier this year, the stock's rally took the company's to No. 1 among USA auto makers measured by market capitalization, vaulting above General Motors Co.