Tesla has introduced a new lower-cost version of its popular Model Y SUV in the United States.
Many may see Tesla’s new option as part of the company’s recent efforts to boost lagging sales and stay competitive in the ever-growing and increasingly crowded electric vehicle market.
The new long-range drive Model Y is now available for $44,990, dropping to $37,490 after applying the $7,500 federal EV tax credit.
The updated pricing, listed on Tesla’s website Tuesday, makes this version of the Model Y one of the most accessible options for American buyers looking for long-range electric cars.
Tesla’s new configuration this week comes as the company looks to recover from a 13% drop in quarterly sales, per Reuters, its steepest decline in nearly three years.
Some industry analysts may point to growing global competition and ongoing public backlash toward CEO Elon Musk’s political stances and relationship with President Donald Trump as potentially contributing factors to the sales slump.
As of May 6, Tesla has not commented on how this new release may affect production or delivery timelines for their other models, including the viral CyberTruck. Musk’s company is now expected to share more insights during its upcoming second-quarter earnings report later this summer.
Tesla’s struggles in Europe only got worse in April as sales plummeted across several major markets, including the UK, Sweden, and the Netherlands, despite rising demand for electric vehicles overall.
Regardless of the new, more affordable Model Y offers to Americans, Tesla has halted new orders for its American-built Model S and Model X vehicles in China amid rising tariffs on American imports imposed by the Chinese government. As previously reported by The Dallas Express, the change, visible on Tesla’s China website in late April, does not affect the locally made Model 3 and Model Y, which are still available through their Shanghai-based factory.
In Europe alone, Tesla sales dropped 62% last month, according to CNN, even as EV sales rose 8% overall. Other steep losses for the company were reported in Denmark, Portugal, and France.
The lagging sales trends follow a tough first quarter in which Tesla saw a 36% year-over-year sales drop across Europe. This is a rough start to what analysts expect to be another challenging quarter for the car company.