Tesla Reverses Course, Launches Budget-Friendly Model Y Standard Range
In a strategic shift, Tesla has officially opened orders for its more affordable Model Y Standard Range SUV—marking a reversal from CEO Elon Musk’s earlier stance. The vehicle, now listed on Tesla’s website with a starting price of $41,990, undercuts the Long Range version by nearly $9,000.
Key Features and Pricing
- Price: $41,990 (before incentives)
- Drivetrain: Rear-wheel drive (vs. all-wheel drive in Long Range/Performance models)
- EPA Range: 244 miles (vs. 326 miles for Long Range)
- Availability: Orders open now, with production expected soon
A Surprise Reversal
Tesla initially announced the Standard Range Model Y in early 2020, targeting a Spring 2021 release. However, Musk tweeted in July 2020 that the variant was scrapped due to its “unacceptably low” sub-250-mile range. The reintroduction suggests Tesla has either improved efficiency or identified sufficient market demand for a lower-priced option.
“No, as range would be unacceptably low (< 250 mile EPA)”
— Elon Musk (July 13, 2020)
Expanded Options for Buyers
Alongside the Standard Range launch, Tesla updated its configurator to offer a seven-seat option for the Model Y—a first for the compact SUV. This move aligns with Tesla’s strategy to broaden the Model Y’s appeal to families and value-conscious buyers.
Why This Matters
- Market Expansion: The lower price point could attract new buyers hesitant about Tesla’s premium pricing.
- Competitive Edge: Positions Tesla more aggressively against rivals like Ford Mustang Mach-E and Volkswagen ID.4.
- Range Realities: At 244 miles, the Standard Range still exceeds many compe*****s’ base models, making it a compelling option for urban and suburban drivers.
Tesla’s pivot highlights its responsiveness to market dynamics, even when it means revisiting earlier decisions. For EV shoppers, this translates to more choices and greater accessibility to Tesla’s ecosystem.
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