Monday, July 13, 2020

TESLA MODEL Y Shaves $3,000 OFF Tag, Defying COVID Economic Slump



Some companies just keep on chugging with determination even in the face of a normally world-halting crisis such as the COVID-19 pandemic. One of these companies is electronic car-maker Tesla, who reportedly managed to do record delivery numbers for its selection of e-vehicles in the second quarter of 2020, or COVID quarantine central. One of their hit products is the Model Y, their latest compact crossover utility vehicle first previewed in March of last year. A near-contemporary of the Model 3 sedan, Model Y production began this past January and deliveries initiated in March. Sales were so good that Tesla is already slashing its prices.

The Verge tells us that Tesla is shaving $3,000 of its purchase price for the Model Y CUV as of this previous weekend. It comes on the heels of the cross-model price cut that the hit automaker announced back in May for all its other e-cars. Three grand is a bit more than what was shaved off the Model 3 ($2,000) and less than what was lowered for the older products that are the Model S and Model X. Now the tag price for a Model Y is around $49,990, baseline without any additional frills.

The good fortune for Tesla flies somewhat against the general trend of other car manufacturers being hit bad by lower sales brought about by COVID-19, which has been projected to be about 22% on average at the worldwide market. Thus the deliveries of e-cars can be considered a feat especially as the big factory in Fremont, California was temporarily shut down after a number of its personnel tested positive for the rapidly-spreading virus. Nevertheless, as a July 2 statement from the company reports, Tesla Inc. successfully delivered some 80,050 combined Model 3 and Model Y units during the lockdown period.

Added to that the 10,600 units of Tesla Model S and X’s within the same timeframe, and the company had a total delivery quota of 90,650 for all of its currently-available electronic vehicles. This more than meets the estimate by Wall Street that Tesla could at best deliver 72,000 units at optimum. Now, with the Model Y CUV $3,000 more affordable than during its introduction, the sales and deliveries are likely to keep on going.

Image courtesy of Forbes

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