Tesla will eventually let its owners watch Netflix and YouTube while their vehicles drive themselves.
Tesla also posted revenue of $6.35 billion for the second quarter after setting a delivery record.
Elon Musk says demand for the Model Y and Model 3 could reach over 2 million units annually.
Tesla had a hard time picking a site, but will eventually build the all-electric SUV at its Fremont factory in California.
Tesla plans on starting production of its compact crossover in the second half of 2020.
The updated Model S will likely adopt a minimalist cabin with an all-new infotainment system.
The Tesla Model Y won’t land in the hands of customers until the fall of 2020.
Top Gear visited the Tesla factory, drove a Model 3, checked at a supercharging station and saw the Model Y.
Apart from the Model Y, Tesla has also increased pricing across its inventory by three per cent.
Even though the new program is most cost efficient for the automaker, Tesla owners still get a chance to win a Roadster.
Deliveries of the Tesla Model Y will start next year with prices topping $70,000.
Tesla analysts and investors feel the Model Y is underwhelming and may steal sales from the Model 3.