Tesla’s idea of a ‘cheaper’ Model Y is a long range single motor version

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.