Bloomberg reports that Tesla Model Y's base model has been priced at an amazingly affordable $46,990 - this represents a savings of $759 when compared with the average new car cost in America. One possibility could be an overstock of inventory at Tesla - perhaps they are trying to clear some.
Bloomberg reports that, since the "modern age of automobiles", no other automaker had offered such an extreme price cut on a high volume vehicle; or at least an improvement of $20,000 between two vehicles.
Many will be drawn to purchasing the Model Y because, along with its lower cost and eligibility for the full $7.500 federal tax credit, they qualify for full federal tax relief. Some people might become nervous over Tesla's profits margins since everyone nowadays can be seen as amateur investors.
Adam Jonas of Morgan Stanley is an observer and critic of Tesla, raising questions as to whether their aggressive pricing strategies in the US - often described as price wars - will intimidate rivals.
Morgan Stanley analyst Adam Jonas said last week that Musk’s US cuts are so aggressive, they may lead some automakers to slow down their breakneck pace of investment in electric vehicles, rather than compete with Tesla on price in an uncertain economy. “We are questioning whether this is the ‘moment’ where the boards of the legacy OEMs can reconsider dialing back the magnitude and timing of their EV capex and R&D plans,” Jonas said.
Tesla may have announced on its website a price drop to $46,990 for their Model Y sedans - an admirable effort from them - yet only higher-priced trims remain in inventory - rendering this effort useless. Luckily, however, there are at least two near New York City that come close to meeting this threshold price, seemingly waiting to be purchased!
