Tesla Inc has cut the price on its 7-seat Model Y by $1,000 in the U.S.
What Happened: Tesla Model Y long range’s seven-seat interior option will now cost the U.S. consumer an additional $3000 on top of the base price, as per Tesla’s website. Previously, it cost $4000 more. A five-seat interior is already included in the mid-size SUV.
The Model Y’s base model is priced at $49,990 and qualifies for a $7,500 federal tax credit.
Why It Matters: Earlier this month, Tesla cut prices of some of its Model Y and Model 3 vehicles in the U.S. ahead of its first quarter results. The EV giant’s price cuts commenced in about January with price cuts of up to 19.7%.
The slew of price cuts enabled better first-quarter deliveries for the EV giant and added pressure on rival EV makers to cut costs to battle competition.
However, Tesla delivered only 10,695 units of its Model Y/3 vehicles in the first quarter as compared to the 17,147 units it sold in the previous quarter.