Tesla Slashes Model Y Price as Pandemic Weighs on Auto Sector

Tesla cut the price of its sport utility vehicle Model Y by $3,000 (roughly Rs. 2,25,400), just four months after its launch, as the US electric carmaker seeks to maintain sales momentum in the COVID-19 pandemic. The reduction follows price cuts in May on Tesla's Model 3, Model X, and Model S. The company headed by Elon Musk this month posted a smaller-than-expected fall in car deliveries in the second quarter, resilient results despite the pandemic that hit the global auto industry.

The Model Y now starts at $49,990 (roughly Rs. 37.56 lakh), down nearly 6 percent from its previous price of $52,990 (roughly Rs. 39.81 lakh), according to the carmaker's website.

Tesla did not immediately respond to a Reuters request for comment.

The company started deliveries of the Model Y in March, promising a much-awaited crossover that will face competition from European carmakers like Volkswagen AG rolling out their own electric rivals.

In April, Tesla had said the Model Y was already profitable, marking the first time in the company's 17-year history that one of its new vehicles turned a profit in its first quarter.

© Thomson Reuters 2020

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