Tesla (TSLA) appeared to stop taking orders for the cheapest version of the Model Y Standard Range sport utility vehicle, then CEO Elon Musk reveal yet another twist. Tesla stock fell sharply.
But then Monday afternoon, Musk tweeted “It is still available off menu, but I don’t think the range, in many drive conditions, yet meets the Tesla standard of excellence.”
To order the Model Y variant, a Tesla sales representative must fill out a form that asks the Fremont, Calif., factory to produce it, according to Teslarati, which added it’s also still available for order via Tesla showrooms.
The Model Y SR is a configuration that Musk once said he would never produce because the range would be “unacceptably low” at less than 250 miles.
Tesla first introduced this version of the Model Y Standard Range RWD with 244-mile range in 2019. Last week, Tesla slashed the base model Model Y by $2,000 to $39,990.
Tesla raised the price of its Performance models by $1,000, including the Model Y, which rose to $60,990.
Tesla’s website on Monday also shows a $1,000 price cut for the Model 3 and Y Long Range Dual Motor AWD. The Model Y LR now goes for $48,990, and the Model 3 LR costs $45,990.
Tesla Stock Flashes Bearish Signal
Shares plunged 8.55% to close at 714.50 on the stock market today, giving up nearly all their since the new year began. Tesla stock has now knifed through its 50-day moving average, according to MarketSmith chart analysis. Investors could lighten their position on Tesla stock, though they could also wait for a weekly close below the 10-week line before acknowledging a sell signal.
Among legacy automakers with a growing presence in the EV market, GM fell 1.1%, Ford climbed 1%, Nissan fell 1.15% and Volkswagen rose 2.2%.
Competition Heats Up In EV Market
There’s no official word as to why Tesla removed the standard version of its Model Y from its website. The EV maker appears to be experimenting with its offerings and price points as competition heats up in the U.S. and abroad.
In Japan, the base price of the standard version of a Model 3 was cut to about $40,500. The long-range version now goes for $47,200. Tesla hopes the price cuts will spur sales in Japan, where it sold fewer than 2,000 cars last year, and where Nissan‘s (NSANY) Ariya electric-crossover SUV is slated to hit the Japanese market later this year.
In January, Tesla reduced the prices of its European Model 3, according to Electrek. In Germany, the Model 3 price fell 4,000 euros, and in France the price dropped by as much as 6,000 euros.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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