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business
Monday Jul 13 2020
By
Reuters

Tesla slashes Model Y SUV price by $3000 amid coronavirus pandemic

By
Reuters
The reduction follows price cuts in May on Tesla’s Model 3, Model X and Model S. Photo: Tesla

Tesla on Sunday announced it would cut the price of its sport utility vehicle Model Y by $3,000, just four months after its launch as the coronavirus continues to wreak havoc on the auto industry.

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, down nearly 6% from its previous price of $52,990, 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.