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Musk Says Tesla Is Likely to Produce Model Y in Fremont

Tesla’s Model Y.

Tesla’s Model Y.

Photographer: Patrick T. Fallon/Bloomberg

Elon Musk said that Tesla Inc.’s current “default plan” is to produce the Model Y sport utility vehicle at its sole auto plant in Fremont, California.

The electric-car maker assembles the Model S, Model X and Model 3 in Fremont, but produces battery packs and drive units at its gigafactory near Reno, Nevada. It has been weighing the pros and cons of each location, including space constraints and labor costs due to the Bay Area’s high cost of living.