tesla (TSLA) has discontinued its Model Y rear-wheel drive model and replaced it with a long-range RWD model.
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Just two weeks ago, the EV giant cut the price of the Model Y RWD by $2,000 to $42,990, matching its lowest list price to date. Pricing for the Long Range RWD starts at $44,990.
Tesla claims a range of 320 miles for the Model Y LR RWD, compared to 260 miles for the RWD. So for $2,000 you get quite a bit more range. Model Y LR all-wheel drive starts at $47,990 and has a range of just 310 miles, but faster acceleration.
Elon Musk posted on his social site .
The Long Range RWD, like the previous base model, is eligible for a $7,500 IRA tax credit, lowering the effective price to $37,490.
This is significantly cheaper than the Model 3. The Model 3 RWD starts at $38,990 and the Model 3 AWD is $47,740, but no tax credit is available due to the non-compliant battery. Pricing for the Model 3 Performance starts at $53,990, but with tax credits, the effective price is $46,490.
Last month, Tesla eliminated discounts on its new Model Y inventory in the U.S., which had run about 10%. Therefore, the effective price of the Model Y in the United States is higher than it was a few weeks ago.
tesla stock
Tesla stock rose 7.7% last week to 181.19, after soaring 14.4% the previous week. The stock has risen above the 10-week resistance line in 2024.
The stock rose 15.3% on April 27 after Elon Musk's visit to Berlin and as Tesla cleared a key hurdle to start fully self-driving cars in China. TSLA stock pared its weekly gains after Musk fired the Supercharger and New Car teams, raising questions about the EV giant's strategy and long-term growth prospects.
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