Tesla Launches New, Cheaper Variant Of Model Y In US: Retail Stays Optimistic

EV giant Tesla Inc. (TSLA) launched a cheaper version of its best-selling Model Y SUV in the U.S. on Wednesday.

The company website lists the starting price of the new long-range rear-wheel drive variant of the vehicle as $44,990, not including the federal tax credit of $7,500 available on the purchase of select electric vehicles.

The other Model Y variant available in the U.S. is the long-range all-wheel drive variant, which is priced at $48,990 without tax credit.

Tesla launched the refreshed version of the Model Y in January this year. However, only one variant of the refreshed vehicle was available until recently.

The Model Y, launched in 2020, is Tesla’s best-selling vehicle. In April, the company pegged the 13% dip in first-quarter vehicle deliveries to several weeks of lost production as it prepped its production lines across factories for the refreshed Model Y.

The Model Y is produced at Tesla’s California, Shanghai, Berlin, and Texas plants.

The company is also looking to deploy Model Y vehicles equipped with full self-driving (FSD) driving assistance software as robotaxis in Austin this June.

Separately, the company said in April that it plans to launch new vehicles, including more affordable models, in the first half of 2025. Tesla did not give more details about these new models.

On Stocktwits, retail sentiment around Tesla stayed unmoved within the ‘extremely bullish’ territory over the past 24 hours while message volume remained at ‘low’ levels.

TSLA stock is up by 1.3% in premarket trading on Wednesday.

The stock has declined by about 27% this year but is up by nearly 55% over the past 12 months.

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