Tesla Cancels Cheapest Version of Model Y Due to Low Range

Andrew Cummings
July 13, 2020

Tesla cut the price of its sport utility vehicle Model Y by $3,000 (roughly Rs. 2,25,400), just four months after its launch, as the USA electric carmaker seeks to maintain sales momentum in the COVID-19 pandemic.

Tesla lowered the price of the Model Y Long Range AWD by $3,000 on Saturday.

The lower price might serve to get a stronger lead versus a flood of forthcoming rivals sized and equipped like the Model Y. The Polestar 2, which hits a middle ground between the Model 3 and Model Y, is just reaching the market. A Standard range previously announced to start at $41,200 is due to enter production in early 2021.

The price cuts to the Model Y follow similar price cuts made to the rest of Tesla's lineup.

Tesla also dropped the price of the Performance model with the Performance package (now standard) to just below $60,000. In late May, prices of the Model S and Model X Long Range Plus both fell by $5,000 from $79,990 down to $74,990 respectively.

In April, Tesla had said the Model Y was already profitable, marking the first time in the company's history that one of its new vehicles turned a profit in its first quarter.

The $3,000 price cut comes as Tesla seeks to maintain sales momentum in the COVID-19 pandemic.

This makes the equivalent Model Y only $3000 more expensive than the same Model 3, offering buyers much more choice. The price is up nearly 270% this year alone, with Friday's close coming in at $1544.65.

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