Tesla Model Y electric crossover will be built in Fremont

And it'll have 8-10% less range than the Model 3 sedan

Tesla will likely build the Model Y electric crossover alongside the Model 3 sedan at its plant in Fremont, California, according to Elon Musk.

"Right now our default plan actually is to produce the Y at Fremont," Musk said on the "Ride the Lightning" podcast hosted by Ryan McCaffrey. "I was skeptical about whether this made sense at first, but my team convinced me the fastest way to get to volume production is to do the Y at Fremont."

Up until now, it hadn't been clear whether the electric crossover would be built in California or Nevada. Currently, the Fremont plant hosts production of the Model 3, Model S and Model X. Tesla's sprawling Gigafactory in Nevada produces battery packs and drive units for those vehicles. So either way, it seems like there would be apparent synergies that would factor into the decision.

Tesla produced more than 250,000 vehicles last year at Fremont and has more than 10,000 employees there. This is also the location where the automaker set up a secondary production line for the Model 3 housed in a tent outside the factory, which makes us wonder where exactly the space for the Model Y line will be found.

Musk also speculated on the podcast that the Model Y would have 8-10% less range than the Model 3. Considering that the Model Y is a slightly larger vehicle with optional seating for up to seven passengers, that seems like a reasonable reduction.

Production of the Model Y is currently pegged for late 2020. It's expected to start at $48,000 (that's $1,000 higher than what was originally announced, for those keeping track) and have a range of around 300 miles. A lower-cost version with 230 miles of range will follow at a later point for $39,000.

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