Tesla's Model Y will be based on Model 3 and will come sooner than we thought

Tesla CEO Elon Musk has changed his mind about the company's upcoming Model Y electric crossover.

During Tesla's earnings call Wednesday, Musk said that the Model Y will be "using substantial carryover from Model 3, in order to bring it to market faster." 

This is in contrast to Musk's comments from the first quarter earnings call in March, where he said that the Model Y production line would be "nothing close to anything." Back then, Musk said that the Model Y would come in 2019 or 2020; it's unclear how much this timeline has changed given the new information.

Musk also said in March that the new production line would allow Tesla to move away from the 12-volt electrical system used in most cars (and Teslas), which, according to Musk, is "wrong for everything." On Wednesday, Musk confirmed that this is still planned.

So what prompted the change of heart? Musk said that his executive team "reeled him back from the cliffs on insanity," which doesn't tell us much. What Musk is likely referring to is the enormous cost of developing yet another platform. He did highlight the importance of the SUV segment today, implying that bringing the Model Y to the market sooner might be good for sales.

As for that entirely new production line, Musk said the company still plans to do this "crazy thing" in the future, but likely after the Model Y hits the market.

In June, Tesla shared the first image of the Model Y (see above), which only showed the outline of the car that, notably, had no side mirrors. Musk also previously tweeted (in a now deleted tweet) that either Model 3 or Model Y would have the Falcon Wing doors, first seen on Model X. Nothing else is known about the car in terms of specs.