Tesla has launched a new Model Y variant in the U.S. that's $3,750 cheaper than the prior base model. That came hours after the EV giant reported a bigger-than-expected drop in third-quarter deliveries. TSLA stock fell slightly Tuesday.
Tesla on Monday night unveiled a rear-wheel drive Model Y for $43,990, with an official range of 260 miles, according to the company's website. Deliveries are set to start in October-November.
The prior base Model Y with 4680 cells, which went for $47,740, is no longer available.. Its dual-motor Long Range and Performance variants start at $50,490 and $54,490.
Tesla has already sold a RWD Model Y in China and Europe for quite some time. Over the weekend, Tesla slightly updated the RWD Model Y in China.
Tesla briefly offered a RWD Model Y in the U.S. with a 244-mile range, but quickly pulled the variant in 2021.
A cheaper Model Y should help with volumes, but suggests continued pressure on selling prices and margins.
Tesla Deliveries
Early Monday, Tesla reported it delivered 435,059 vehicles in Q3, down 6% vs. Q2's record 466,140. Analysts expected about 455,000, with consensus coming down from roughly 470,000 just a few weeks ago.
Tesla slashed production in Q3, citing factory upgrades, but high inventories were a likely reason as well.
In the fourth quarter, Tesla will begin deliveries of the updated Model 3 and perhaps the Cybertruck.
Tesla Stock
Tesla stock fell 2% to 246.53 on Tuesday, dropping back below the 50-day line. But it was an inside day to Monday.
TSLA stock initially fell Monday on the weak deliveries, but rallied to close up 0.55%, just above the 50-day.
Bulls are looking ahead to a Q4 delivery rebound as well as hopes for self-driving and artificial intelligence.
Tesla stock is working on a 278.98 cup-with-handle buy point, according to MarketSmith.
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