Following CEO Elon Musk’s questionable actions in recent weeks, Tesla has been transformed from both a darling of Wall Street and the global automotive industry into something of a pariah, a company with a future that may be in doubt. Despite the recent reversal of fortune, Tesla may still be working to introduce more affordable vehicles in a bid to grow its global sales.
Strip It Down, Drop The Price, Boost Deliveries
As reported by Electrek, rumblings from China indicate that the first lower-priced Tesla will not be a fresh model riding on an exciting new architecture; Rather, it’s likely to only be a Model Y utility vehicle with features removed to lower the price tag.
Going this route could help Tesla take advantage of manufacturing capacity for the Model 3 sedan and Model Y that isn’t currently being utilized. As sales of the automaker’s vehicles fall – and they’ve been tumbling around the world recently – the company likely has the ability to build loads of vehicles it can’t immediately sell.
Who Doesn’t Love Saving Money?
From a product standpoint, none of this is particularly exciting. Everybody always wants to see new vehicles and fresh features, but from a business perspective, cheapening the Model Y makes perfect sense.
Current Tesla Pricing By Model
|
Model |
Base Price |
|---|---|
|
Model 3 |
$42,490 |
|
Model Y |
$59,990 |
|
Model S |
$79,990 |
|
Model X |
$84,990 |
|
Cybertruck |
$79,990 |
Mexico Leading The Charge?
Reportedly, Tesla had been working on two super-affordable models, vehicles that could kick off at just $25,000. Supposedly, these offerings were internally referred to as NV91 and NV92, both of which would wear styling that looks like other Tesla vehicle and they would have been based on the architecture that supports the upcoming Cybercab autonomous taxi.
This upcoming stripped-down Model Y is expected to launch in China later this year, and then it will likely go on sale in other global markets like Germany and the U.S. This stripped-down SUV will likely follow the same strategy Tesla used with its lower-priced Model 3 sedan that launched in Mexico last year, a car that starts around $35,000. To cut costs, this sedan has fabric-covered seats instead of artificial leather, ambient interior lighting has been nixed, and there’s no screen for backseat passengers.
What Effect Will The New Offering Have On Sales?
It will be interesting to see if Tesla’s recent sales decline can be reversed. Lower-priced models that take advantage of available manufacturing capacity could certainly help grow deliveries, but it remains to be seen if the brand is damaged beyond repair at this point. The recent reversal of Tesla’s fortunes has been as swift and staggering as it is surprising.
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