Comment by vel0city
Model X wasn't a 4-person car. It was designed to be a 6-7 seater, far bigger than the Model Y. The Model Y's optional third row is practically useless.
Its like arguing the Honda CR-V is the same kind of vehicle as the Honda Odyssey.
The real question is why continue having the Model Y and the Model 3, when those are so incredibly close in dimensions. The 3 is only 2" smaller than the Y in length. Just kill the 3 and make a cheaper trim level of the Y. $10k more to have a 7" higher roof and more features in the base model.