Tesla slashes Model Y price by $3,000 as pandemic upends market

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Tesla Inc. has cut the price of its Model Y crossover by $3,000 less than four months after starting sales.

The starting price is now $51,190, including a $1,200 destination and documentation fee, according to Tesla’s website. The electric-car maker had been charging $54,190 since beginning deliveries in mid-March.

The Model Y reduction is the second significant price cut Tesla has made to its vehicles in roughly six weeks. In late May, the company lopped $5,000 off the Model S and X and $2,000 off the Model 3, which some analysts viewed as a bearish signal of demand.

Tesla ended up delivering 90,650 cars to customers in the second quarter, beating analysts’ estimates and sending its shares soaring. The 269 percent surge in the stock price this year has vaulted CEO Elon Musk past Warren Buffett on the Bloomberg Billionaires Index.

Tesla did not immediately respond to a 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 as Volkswagen Group and others roll 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 the first quarter it was launched.

The blog Electrek reported the Model Y price cut earlier Saturday.

Reuters and Automotive News contributed to this report.

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