Story by
Matthew Beedham
Editor, SHIFT by TNWMatthew is the editor of SHIFT. He likes electric cars, and other things with wheels, wings, or hulls. Matthew is the editor of SHIFT. He likes electric cars, and other things with wheels, wings, or hulls.
Tesla CEO Elon Musk took to Twitter earlier today to let the world know that there is not going to be a cheaper version of the Model Y.
Prior to the launch of the Model Y, Tesla said that it would effectively mirror the pricing structure of its Model 3 sedan. The only difference would be a price bump of around $5,000 at each spec level. However, that’s not going to be the case as Musk says the range of a more affordable “standard range” Model Y would be “too low,” Electrek reports.
[Read: Honda to buy a tiny stake in EV battery company that also supplies Tesla]
In case you were wondering, Musk‘s idea of “too low,” is below 250 miles (around 400 km).
No, as range would be unacceptably low (< 250 mile EPA)
— Elon Musk (@elonmusk) July 13, 2020
At present, Tesla only offers the Model Y in two premium spec levels: the long range and the performance — both of these models are good for 316 (508 km) and 291 miles (470 km) of range respectively. The Model Y is also only offered in a dual motor all-wheel drive setup.
Not willing to compromise on range, it seems that Tesla will pivot from its typical strategy of offering a “standard” vehicle and will offer the Model Y in a single motor long range rear-wheel drive version. Given that it will be lighter and more efficient, thanks to losing a motor, we should expect this Model Y to have even longer range than the current all-wheel drive variant.
Musk says this product should be coming in a few months.
We have reduced pricing on Model Y LR dual motor & will offer a LR single motor Y in a few months, which improves affordability, while still keeping the product excellent
— Elon Musk (@elonmusk) July 13, 2020
However, it’ll still likely be positioned as a premium product so it’s unlikely that it will be significantly cheaper than the current Long Range Model Y which now starts at around $49,990 (before incentives and subsidies). Whether coincidence, or something else, this news comes within a day of Tesla cutting the price of the Model Y by $3,000. Last week, the Long Range AWD had a starting price of $52,990.
Earlier this year, Tesla cut the prices of some Model S and Model X variants by $5,000.
As more affordable EVs come to market, Tesla appears to be acutely aware that it can’t rely on its brand alone to sell its cars — it’s also got to sell them at a competitive price.