The unprecedented surge of Tesla stock last week in more than six years has more to do with an upcoming product than a surprise profit in the third quarter.  

According to reports, the upcoming Tesla SUV, Tesla Model Y is that product and it will be a game-changer leading to more stock push from its market impact.

Tesla announced the fast-tracked production plan of Model Y in a presentation to the investors. It said the production of Model Y is being advanced to summer 2020 as against late 2020.

“There may be some room for improvement there, but we're confident about summer 2020,” said Tesla CEO Elon Musk about the company's new schedule.

Reports also said Tesla has started installing equipment at its factory in Fremont, California to build the Model Y, which shares many components with Model 3 sedan. The company will also build Model Y at its China Gigafactory in Shanghai, and also at the upcoming Gigafactory in Europe. 

This is an achievement given Tesla’s lackluster track record of internal deadlines for rolling out new cars, per Tesla news. Moving a deadline up makes big news for the electric car maker.

Market demand shifting to SUV from sedan 

By prioritizing the Model Y, Tesla is giving a message that it is giving up the reliance on sedans via the hot selling Tesla Model S and Tesla Model 3 in favor of SUV. 

In the U.S. market, car buyers had been moving away from sedans to SUVs.  Sedan sales have fallen 40 percent in the last five years and SUVs are gaining from the sales.

“It's the body style of choice,” notes Michelle Krebs, a senior analyst with Cox Automotive. 

SUV is one segment where established automakers are concentrating to expand electric vehicle offerings. For Tesla to match the growing line up of electric cars from other players an expanded fleet of SUV is imperative.

According to Krebs, the Model Y is bound to get a good positioning in the market thanks to Tesla's brand reputation vis a vis other electric SUVs,

“The one thing no one can compete with Tesla is on the mystique of the brand,” the analyst said noting Tesla has huge equity as an aspirational brand.

Price and range of Model Y

The Tesla consumer website’s ordering page for the Model Y says production will start late next year for the Long Range and Performance versions, while the low priced Standard Range model will start in early 2021. 

According to media reports, the price of Tesla Model Y will range from $40,200 for the Model Y Standard Range to $62,200 for the Model Y Performance. 

In terms of range, the Standard will have a driving range of 230 miles, while the Long Range can go up to 300 miles on a charge.

Model Y sales, CEO Musk expects to be a minimum of 50 percent more than the Model 3. If that translates into reality, the Model Y will dominate the market as the bestselling SUV be it gas or electric. 

Right now, in the U.S, the top seller of SUV is Toyota Rav 4, and others in the reckoning include Mercedes SUV.