Tesla Slashes Model Y Price by 11%, Introduces Model 3 'Standard'
Tesla has announced price cuts for its Model Y, making it 11% cheaper than before. The new base-level Model Y now starts at $43,990, while the Model 3 'Standard' has been introduced at $36,990. These changes come as the average price of electric vehicles in the US this summer was about $57,000, with Tesla models averaging around $54,468.
The new Model Y 'Standard' is priced at $39,990, a significant reduction from the previously announced starting price of $39,990 to $41,990. However, it comes with fewer features than its premium counterparts, such as no second-row touchscreens or Autopilot. Tesla had initially planned to start production in the first half of 2020 but faced delays due to the COVID-19 pandemic and production issues. The first mass-produced vehicles were not delivered until the end of 2021.
Analysts had expected a deeper price cut of around 20%, which would have brought the price down to about $35,900. Instead, Tesla scrapped plans for a new $25,000 model and introduced the cheaper Model Y 'Standard'. The news of the price cuts led to a 4.1% drop in Tesla stock.
Tesla's price cuts for the Model Y and the introduction of the Model 3 'Standard' make these vehicles more affordable, but they remain above the $30,000 target set by CEO Elon Musk. The new 'Standard' models offer fewer features than their premium counterparts, reflecting the company's strategy to make electric vehicles more accessible while maintaining profitability.
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