Tesla (TSLA) no longer holds orders for the cheapest version of the Model Y Standard Range sports utility vehicle, just over a month after its launch and barely a week after a price reduction, according to its website. The Tesla share fell sharply.
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The news was first reported by Electrek. The Model Y SR is a configuration that CEO Elon Musk once said he would never manufacture because the range would be ‘unacceptably low’ at less than 250 miles.
Tesla introduced this version of the Model Y Standard Range RWD for the first time with a range of 244 miles in 2019. Last week, Tesla cut base model Model Y by $ 2,000 to $ 39,990.
Tesla increased the price of its Performance models by $ 1,000, including the Model Y, which rose to $ 60,990.
Tesla’s website also showed a $ 1,000 price reduction for the Model 3 and Y Long Range Dual Motor AWD on Monday. The Model Y LR now costs $ 48,990, and the Model 3 LR costs $ 45,990.
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Tesla Stock Flash Bearish Be
Shares fell 8.2% to 717.16 on the stock market today. According to the MarketSmith chart analysis, the Tesla stock has now broken its 50-day moving average. Investors can ease their position on Tesla shares, but they can also wait for a weekly close below the 10-week line before recognizing a sell signal.
Tesla, an IBD Leaderboard stock, flashed several signals of a climax peak in early January, which could mean the stock has reached its peak and is possibly due to a downturn.
The stock has an RS rating of 96 and an EPS rating of 74. The relative strength line is lower.
Among the old-fashioned carmakers with a growing presence in the EV market, GM fell by 0.7%, Ford climbed by 1.1%, Nissan fell by 1.3% and Volkswagen by 2.3%.
EV manufacturers in China Nine (NIO) tumbled 8% and Xpeng (XPEV) decreased by 7.2%.
Competition heated in EV market
There is no official word as to why Tesla removed the standard version of its Model Y from its website. The EV manufacturer is apparently experimenting with its offering and price points as competition in the US and abroad increases.
Tesla has made several models in its range more affordable than old-fashioned car manufacturers like General Motors (GM), Ford (F) and Volkswagen (VWAGY) is making a big push in the EV market.
In Japan, the base price of the standard version of a Model 3 has been reduced to about $ 40,500. The long-distance version now costs $ 47,200. Tesla hopes the price cut will boost sales in Japan, where it sold less than 2,000 cars last year Nissanse (NSANYAriya electric crossover sports utility vehicles will reach the Japanese market later this year.
According to Electrek, Tesla lowered the prices of its European Model 3 in January. In Germany the Model 3 price dropped by 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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