Tesla’s cuts Model Y retail price, focuses on maintaining sales momentum

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.

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