Musk Says Tesla Plans to Build New Factory for Model Y Crossover

  • Carmaker’s sole assembly plant is ‘bursting at the seams’
  • CEO sees Model Y crossover demand passing Model 3 eventually

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Tesla Inc., which has leveraged a single assembly plant to become one of the world’s highest-valued automakers, has another one coming.

The electric-car maker’s factory in Fremont, California, is “bursting at the seams” making Model S sedans, Model X crossovers and preparing for the upcoming Model 3 car, Chief Executive Officer Elon Musk told shareholders Tuesday. Tesla is deciding the location for a plant to build the Model Y, a smaller crossover scheduled to arrive as soon as late 2019.