Madhukumar WarrierTue, February 23, 2021, 3:46 AM
Tesla Inc. (Nasdaq: TSLA) is still offering the Model Y Standard Range, but only as an “off-the-menu” item, CEO Elon Musk said Monday.
What Happened: The electric vehicle maker made the move apparently due to the sport utility vehicle’s low range.
“It is still available off menu, but I don’t think the range, in many drive conditions, yet meets the Tesla standard of excellence,” Musk said on Twitter.
Why It Matters: As part of efforts to make some of its vehicles more affordable, Tesla had slashed the price of the base models of its Model 3 and Model Y vehicles last week. The company cut the price of the Model Y Standard Range by $2,000 to $39,990.
However, Electrek reported Sunday that the Palo Alto-based company has stopped taking orders for the vehicle and also removed the model from its online configurator.
The confusing moves on Tesla’s part come just over a month after it launched the Model Y Standard Range.
Tesla had originally announced the cheapest version of the Model Y in 2019, but Musk said at that time the company would not produce the Standard Range due to its “unacceptably low” range of less than 250 miles.
Price Action: Tesla shares closed more than 8% lower at $714.50 on Monday.