Tesla is readying its cheapest EV—Here's what it will lack
What's the story
Tesla is gearing up to launch a more affordable version of its electric vehicle (EV), but it won't be an entirely new model. Instead, the company will offer a stripped-down version of the recently revamped Model Y Juniper. The news was confirmed by CEO Elon Musk during Tesla's latest earnings call on Wednesday.
Production details
Tesla has started production of this more affordable Model Y
Tesla started production of this more affordable version of Model Y in June, Musk confirmed during the earnings call. However, he didn't reveal which features would be removed from the existing car to make it cheaper. The company is yet to announce how much this stripped-down Model Y will cost or what features and range it would offer.
Feature speculation
Take a look at the expected changes
While Tesla hasn't confirmed which features will be removed from the new model, we can guess some possibilities. A smaller battery pack could be one of the changes, along with less powerful motor(s), cloth seats and removal of comfort items like dual wireless charging and rear infotainment screen. The stripped-down Tesla Model Y could cost somewhere in mid-$30,000 range before tax incentives.
Sales impact
Launch ahead of tax credit expiration
The launch of this more affordable Tesla Model Y could happen before the expiration of the $7,500 federal tax credit on September 30. However, some states may continue their incentives for electric vehicles (EVs). This could lead to a short-term surge in sales as customers rush to take advantage of the federal tax credit before it expires.