Tesla walks back its plan to close most showrooms

Tesla Model Y UK

Last year, Tesla's total headcount increased by 30 percent, "which was more than we can support", Musk wrote in a company blog post.

While the new SUV is expected to be built on the same platform as the Model 3, we should expect more seats on the inside, as well as a new set of instrument panels - something which has been a feature so far on every new Tesla model.

"Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have made a decision to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months", said Tesla in a blog post.

Just last month, Musk said he was "certain" that Tesla vehicles would be able to operate without driver intervention by the end of 2019, pending regulatory approval.

One of the biggest challenges with Tesla cars reaching the masses has been their high price.

Of course, building cars - and sophisticated auto software that can sense its surroundings and make the right decisions to act accordingly - is an extremely hard endeavor, one that Tesla and rival vehicle companies are still pioneering. This wasn't always going to be the case, as Musk previously said that it would utilize a bespoke platform.

The $35,000 base Model 3 will still be available but the company will raise prices 3 percent on all other models.

Additionally, current and former employees say that Tesla executives still have not decided where to manufacture the Model Y. Tesla vendors contacted by CNBC say they didn't hear from the company regarding Model Y production until after the Twitter reveal.

This year also saw Tesla break ground on a new factory in Shanghai, which is planned to house production of the Model Y after its initial production at the company's Reno, Nevada, factory.

The sedan is expected to be mostly made of the Model 3's existing parts, which means that we possibly won't see gullwing-style doors or any major design changes on the outside.

This abrupt pricing reversal follows reports out of China according to which outraged Tesla owners were protesting the lower prices.

Tesla Model Y is all geared up to launch after the much-anticipated wait. He therefore reasoned that the demand for Model y will be 50% higher than model Y.

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