'I was walked back from the cliff of insanity': Elon Musk reverses 'foolish' Model Y grand plans

Elon Musk has thanked his management team for pulling him "back from the cliff of insanity", and encouraging him to design the upcoming Tesla Model Y on the same platform as the newly-launched Model 3.

It was initially assumed that the Model Y, a small sports utility vehicle, would be based on the Model 3 in the same way Tesla's larger SUV, the Model X, is based on the company's Model S saloon car. Platform-sharing like this is common across the automotive industry, saving time and costs during both development and manufacturing.

But, in early 2017, Musk said the Model Y would be built on a new platform and not go into production until late 2019 or even 2020. Now, on a 2 August conference call with analysts, Musk said he was talked down by his team and hopes to get the new car to market more quickly.

Musk said: "Upon the council of my executive team to reel me back from the cliffs of insanity, the Model Y will, in fact, be using substantial carryover from Model 3 in order to bring it to market faster."

Tesla will no doubt be keen to get the Model Y to market as soon as possible, since the compact and mid-size SUV sectors are the fastest-growing in the automotive space, giving drivers a high and commanding driving position and space for children, but without the intimidating size of a full-fat off-roader or people carrier.

Musk went on: "I have to thank my executive team for stopping me from being a fool. Model Y will have relatively low technical and production risk as a result."

The entrepreneur's comments came after Tesla announced its second-quarter financial results, revealing revenue of $2.8bn (£2.1bn) and a loss of $2.04 per share. Almost $1bn was spent in the quarter to bring the Model 3 into mass production. This is key to the company's short-term customer relations and long-term survival, as the Model 3 is currently amassing some 1,800 reservations per day. The company is aiming for a production rate of 5,000 vehicles per week by the end of 2017, before doubling that in 2018.