Tesla Relaunches Rear-Wheel-Drive Model Y at Lower Price

Tesla has quietly reintroduced a rear-wheel-drive version of its popular Model Y car in the United States, offering it at a lower price point. The new version of the electric vehicle, which has become Tesla’s best-selling car, now starts at $43,990, as stated on the company’s website. This rear-wheel-drive model replaces the all-wheel-drive variant, which was discontinued last month and was priced $3,750 higher. Notably, the rear-wheel-drive version was previously available in Europe and China but was discontinued in the U.S. earlier this year.

In addition to the U.S. release, Tesla has also updated the Model Y in China, introducing a new wheel design. However, the starting price for the Chinese market remains unchanged at approximately $36,000. This move comes shortly after Tesla’s third-quarter delivery figures were released, which fell below analysts’ expectations. The company reported delivering 435,059 cars, lower than the consensus estimate of 455,000. Initial estimates had projected deliveries as high as 473,000 vehicles.

Following the disappointing delivery numbers, Tesla’s stock experienced a decline in premarket trading on Monday but managed to close the session with a 0.5% gain. On Tuesday, the stock opened 0.5% lower. Tesla continues to navigate the challenges of meeting demand and optimizing its product offerings to cater to various markets.

For more information, contact Callum Keown at callum.keown@barrons.com.