Tesla lowers the price of the Model Y to below 40,000 euros
The Tesla Model Y Standard has a final price of 39,900 euros, a figure that could drop below 30,000 if we take advantage of all the promotions and institutional aid.
Elon Musk has a plan to revive Tesla model sales, after the company has endured some of the darkest hours in its history as a result of its CEO's political adventures. Tesla's roadmap involves increasing sales of the Model Y, a car that in 2023 became the best-selling vehicle of the year and even surpassed traditional combustion vehicles.
The new Tesla Model Y Standard is the entry-level version of the Model Y, the first units of which will arrive in our market during the months of November and December of this year. It has a range of 534 kilometers according to the European WLTP approval cycle, a power output of 300 hp, a charging capacity compatible with charging stations of up to 225 kW at a Supercharger point, and is capable of accelerating from 0 to 100 km/h in 7.2 seconds. This entry-level version has rear-wheel drive and promises to become the best-selling Tesla version in our market, thanks to a truly competitive price of €39,900, which, if the €7,000 Moves III plan and personal income tax deductions are included, could even be below €0. A more than attractive price for a product that has already proven itself in the market.
This entry-level version is somewhat more spartan both aesthetically (18-inch wheels, simpler LED headlights) and, above all, in the interior, where it does away with the rear-seat coffee table, features a simpler sound system with seven speakers instead of a new one, and a panoramic roof, but without synthetic roof lining instead of leather. The Model Y Standard will also not have the Autopilot autonomous driving system, although it is ready to receive the software that enables this feature if the customer wishes to add it to their vehicle at an additional cost.
Aside from the entry-level Standard model, Tesla will maintain a Premium version with rear-wheel drive (RWD) for €49,900, a Premium version with all-wheel drive (AWD) for €52,900, and a Performance variant with all-wheel drive for €61,990. These three versions do not represent any significant changes, as they were previously part of the brand's lineup.
An amortized model
The €5,000 discount on entry-level models makes the Model Y Standard a more than attractive purchase, but it remains to be seen how demand reacts to Tesla's sales move. Elon Musk and the brand's top brass sincerely believe that the sales shock for their cars has been circumstantial, and that the market will continue to demand Tesla cars, as it had been doing progressively until 2023. Furthermore, the price reduction for the entry-level model doesn't pose any major commercial drama for a car that is shared by a car.
However, there are a couple of factors that could limit the commercial impact of the Model Y's purchase price cut. First, it remains to be seen to what extent European and American buyers interested in purchasing an electric vehicle punish Tesla for Elon Musk's political whims. Second, and surely this is the key issue, it remains to be seen whether the Model Y remains a car that wins over new buyer segments.
The Model Y is a car that hasn't evolved much from an aesthetic point of view in the last five years, and it has long since ceased to be a novelty that arouses the curiosity of early adopters, the customer profile that until now has been most loyal to the brand and its new products. In short, we can say that the Model Y is no longer a new product nor does it bring any innovation to the segment, and it's even starting to seem outdated compared to the new Renault 5, Ford Capri, Nissan Ariya, or the new wave of Chinese electric cars, for example. Added to this reality is the updating and competitiveness work of aspirational European manufacturers, such as BMW, Mercedes, and Audi, which offer well-positioned, more modern and innovative products at an increasingly competitive price.