In order to mitigate risks related to the coronavirus pandemic negatively impacting sales momentum in the automobile industry, Tesla Inc plans on cutting the price of its Model Y, a sport utility vehicle, by $3,000.
The development comes just after four months following its launch, making it a fantastic deal for consumers looking to buy an electric vehicle.
The price slash follows similar price cuts on Tesla’s Model 3, Model X and Model S.
The development comes at a time when Elon Musk, Tesla Motor’s CEO posted an increase in car deliveries during the second quarter; these resilient results are despite the coronavirus pandemic which have had a significant impact on the global auto industry.
Following the price cuts, the Model Y now starts at $49,990, down by nearly 6% from its previous price of $52,990, according to Tesla’s website.
Tesla did not immediately respond to requests for comment.
Tesla commenced delivering the Model Y in March 2020. The Model Y is a long awaited crossover that faces fierce competition from European carmakers, including Volkswagen AG, which are rolling out their own electric vehicles.
In April 2020, Tesla had said the Model Y was already profitable, marking the first time in Tesla’s 17-year history, that a new vehicle turned profitable in its first quarter itself.