Tesla has lowered the starting price of its Model Y by $3,000 just four months after the battery-electric SUV started deliveries.
The starting price for the Model Y Long Range is now $49,990, down from $52,990 when deliveries started in March. The starting price of the Model Y Performance has also been lowered, coming in at $59,990 instead of the previous $60,990. Both models are rated at 315 miles of range by the EPA.
More affordable Model Ys are coming. A Standard range previously announced to start at $41,200 is due to enter production in early 2021. It's been promised with 230 miles of range though the figure is likely to come in higher once production gets underway, as was the case with the other Model Y variants.
Tesla Model Y
The price cuts to the Model Y follow similar price cuts made to the rest of Tesla's lineup. In May, the automaker lowered the starting price of the Model S sedan and Model X SUV by $5,000, and the starting price of the Model 3 sedan by $2,000.
Unlike its other models, the Model Y has been profitable for Tesla since the start of production, the company said in April. This is critical for the company's long-term future as the pricier Model S and Model X lose customers to the Model 3 and Model Y. To help offset the loss in revenues, Tesla offers a range of pricey options for the Model 3 and Model Y like the Full Self-Driving feature (which isn't actually fully self-driving capable) for $8,000.
Despite the Covid-19 coronavirus restrictions, Tesla managed to deliver 90,650 cars in the second quarter of 2020, a figure that beat expectations and as a result helped catapult the company's share price. The price is up almost 270% this year alone, with Friday's close coming in at $1544.65. It means Tesla is the most valuable automaker in the world based on market cap, exceeding the likes of Toyota and Volkswagen Group which each deliver millions of cars per quarter.