CEO Elon Musk made the announcement during the company's first-quarter earnings call.
The billionaire added that Tesla still expects to churn out half a million vehicles per year by 2018, ramping up to one million vehicles per year by 2020.
"I think we need to come out with the Model Y sometime in 2020 or aspirationally in late 2019, and I think one million units is quite likely or maybe more," he said.
Tesla has not yet revealed when the Model Y will be available to pre-order.
Last month Musk announced that Tesla has plans to release a pickup truck and SUV.
"Tesla Semi truck unveil set for September. Team has done an amazing job. Seriously next level," Musk tweeted on April 13.
"Pickup truck unveil in 18 to 24 months."
In the meantime Tesla is working on beginning production of its Model 3, which is due to enter production in July.
The Model 3, which already has more than 400,000 pre-orders, is expected to be released late next year.