Tesla Launches Cheaper Model Y in Europe

© Reuters. Tesla (TSLA) Launches Cheaper Model Y in Europe

By Michael Elkins

Tesla (NASDAQ:TSLA) updated their online configurator today to include a new base version of the Model Y. The new version is a rear-wheel-drive Standard Range model that is currently only available in Europe.

The new version of the Model Y is listed as “Rear-Wheel-Drive” and features a range of 455 km (283 miles) compared to the already available Long Range’s 533 km (331 miles) range. The top speed is the same as the standard Model Y at 217 km/h. However, the 0-100 acceleration is much slower at 6.9s.

The most surprising feature on the new rear-wheel-drive model is the price. For example, in the Netherlands, it starts at just €50,000, a €16,000 drop from the long-range version. Including a €8,850 VAT, the starting price is about €42,000. If the vehicle were sold in the US, it would be about $20,000 cheaper than the current cheapest configuration of the Model Y.

Analyst Gordan Johnson, in an interview on CNBC, was bearish on the stock. He pointed towards the company’s production and lead times. When comparing the two metrics, Johnson believes that even with the recent shutdowns, and slower than expected ramp ups, Tesla’s supply is currently outpacing demand.

“The proof is in the data. The proof is in the numbers. They’re (Tesla) losing share in every single market,” said Gordan Johnson in the interview. “Their car factories have been shut down. Texas and Berlin are barely producing any cars, yet their lead times are falling. Which means, again, right now, that production is ahead of their demand with two full plants barely producing any cars.”

The launch was surprising considering comments made by CEO Elon Musk in July saying that Tesla won’t produce the cheaper version of the Model Y because he said that the range would be “unacceptably low” at less than 250 miles (402 km).

The Model Y Standard Range had an EPA-rated range of 244 miles (393 km) and a starting price of $42,000.