Elon Musk Reverses On Tesla Price Cuts

Andrew Cummings
March 16, 2019

Tesla will have to lay its path ahead cautiously, and remove the hurdles it faced with Model 3. Meanwhile, the company also lowered the starting price for Model 3 cars from $43,000 to $35,000, a price point Musk had long promised his fans.

Tesla is expected to begin taking orders for the Model Y shortly after Thursday's reveal, but buyers won't take delivery for a while.

Unfazed by the fact that he's now legally feuding with the SEC for tweets regarding business operations at Tesla, Musk again took to the social media site on Tuesday to explain that Tesla "shouldn't have offered" lower prices on Model S and Model X vehicles.

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.


About a third of Tesla's recruiting team is to be laid off in the latest round of job cuts that the electric auto company has made in recent months.

Tesla also very recently unveiled a new supercharger architecture meant to drastically improve charging speeds.

First and foremost, 75 % of Model Y's components is shared with the Model 3.

For a few months possibly a meaningful saving will not happen for Tesla when it starts making the Model 3 vehicle in volume. The Model Y will have a slightly shorter range than the Model 3 despite the identical battery. Musk also said that Tesla was still closing some stores, despite whipsawing reports of closures, freezes, and stores remaining open, over the last two weeks.


Similar to the Model 3, the upcoming compact SUV Model Y will also be an affordable model targeting mass consumers, priced at around $38,500.

"How else can you view it except to see it as a remarkable example of lack of foresight or planning?" The company could think about the profitability in Q2.According to the company, the Model 3 base model will feature a top speed of 130 miles per hour and can speed up from 0 to 60 miles per hour in just 5.6 seconds.

On Feb. 28, the company said shifting totally to online sales would allow it to lower all vehicle prices by 6 percent, on average, including its higher-end Model S and Model X. He therefore reasoned that the demand for Model y will be 50% higher than model Y.


Other reports by iNewsToday

FOLLOW OUR NEWSPAPER