Tesla just introduced its latest electric vehicle, the type Y, a crossover SUV in which will cost by $39,000 to $60,000 depending on configuration.

The type Y is usually about 10 percent bigger than the type 3, seats seven, features a panoramic glass roof as well as also 66 cubic feet of cargo space, Tesla CEO Elon Musk said, showing off a type Y prototype at the Tesla Design Center in Hawthorne, California on Thursday night.

Demand for sport utility vehicles inside the United States has been high over the past few years. completely new types have flooded the market, looking to unseat best-sellers like the Toyota RAV 4, Nissan Rogue or Honda CR-V.

Tesla hasn’t offered a completely new SUV to tap into in which demand since in which began producing its type X vehicles in 2015. The X features falcon-wing doors, which delighted some drivers however repelled others. The type Y ditches in which feature.

According to Musk, however, the type Y will share about 75 percent of its components with the company’s type 3 electric sedans, allowing Tesla to start manufacturing the completely new SUV for far less money in which in which spent to begin producing the type 3.

Auto-makers typically share parts across completely new types, as well as also sometimes build different types on shared assembly lines. in which helps them control costs as well as also get completely new vehicles to the market relatively quickly.

inside the past, Tesla missed its part-sharing goals, production as well as also sales targets.

Its type X was supposed to share a majority of its parts with Tesla’s type S, however in which only wound up sharing around 30 percent after Musk originally planned for 60 percent.

Pricing of the type Y is usually a key consideration for investors. Bernstein senior technology research analyst Toni Sacconaghi wrote in a note ahead of the type Y debut, “We’d expect the initial cost to be around $55,000. in which will be key to manage against cannibalization.” He also said in which longer-term, the type Y could enjoy higher gross margins than Tesla’s type 3, a car in which the company intended to offer for an accessible cost, aiming to bring electric vehicles to the masses.

Tesla previously said in which could most likely manufacture the type Y at Gigafactory 1, its sprawling battery plant outside of Reno, Nevada. Musk did not confirm in which plan at the unveiling event.

in which story is usually developing.