Tesla recently updated its online design studio for the Tesla Model Y model in the USA, posting a new lower price for both available versions of its latest cars. The last two were fitted out with a Long Range battery. Musk also confirmed that the Model Y had remained under 250 miles, or around 400 kilometers, in the so-called EPA test cycle and thus did not meet expectations for a vehicle suitable for long-distance driving. It delivered 80,050 units of its new Model Y SUV and Model 3 for the quarter.
Tesla's Model Y was launched with four different versions: "Standard Range", "Long Range", "Dual Motor AWD", and "Performance". Elon Musk also mentioned that the range should be "significantly higher than 300 miles". A Standard range previously announced to start at $41,200 is due to enter production in early 2021. They say that it will look like the consumers won't get a Standard Range or Standard Range Plus Model Y, however, surprised with the Long Range RWD.
Benzinga's Take: While many will speculate this shows decreased Model Y demand, this hasn't usually been the case in past price drops, especially when looking at the Model 3. However, the alternative may appeal more to many Tesla shoppers too.
Tesla will be releasing a additional affordable Model Y in a rear-wheel-drive configuration that will have a array of in excess of 300 miles for each charge.
Vicki Bryan from Bond Angle stated regarding the decisions of Tesla with the Model Y that her concerns that there was no profit to be had from the Model Y were right.
Unlike its other models, the Model Y has been profitable for Tesla since the start of production, the company said in April.