Tesla launches cheaper Model Y following end of US EV subsidies

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Tesla has launched a less expensive version of its leading Y. Model, as the Elon Musk Group is preparing to slow down the American demand after the end of the federal tax exemptions for electric cars.

The “standard” version, which is worth $ 37.990, is 15 percent cheaper than the previous basic offer, and has a 10 percent less driving scope of the outstanding version.

The model also has less features, as it lacks an automatic guidance function, a touch screen in the second row and heating seats. The company also unveiled a 3 -sedan affordable version at a price starting at $ 36.990.

The shares of the auto company fell more than 4 percent on Tuesday.

In the third quarter, the global delivery of Tesla set a new record last month, as American consumers rushed to buy electric cars before canceling federal tax exemptions worth $ 7,500.

However, the group warned of difficult periods, as president Donald Trump is seeking to retract the rules to reduce vehicle emissions.

Competitive auto manufacturers, including Ford, Stilllantis and Gres Motors, are expanding their formations of gasoline and hybrid, as they expect electric car sales to decrease and seek to take advantage of the highest profit margins of larger pickup trucks and multi -use sports vehicles.

While reasonable Tesla models are designed to enhance demand, analysts have asked how these launch operations affect the company’s profit margins. Tesla had thought about launching a form at a price of $ 25,000, but this plan was canceled last year.

At its profit conference in July, Lars Moravi, Engineering Executive Director of Tesla, stressed that the aim of providing more affordable models, which the company began to produce in June, was not “negatively affecting revenues or total profit margin.”

In addition to Trump withdrew the incentives of electric cars in the United States, Tesla faces poor demand in Europe due to the political mask activity in addition to the rise of competitors such as BYD.

BYD sales in the United Kingdom exceeded Tesla sales this year after sales of the Chinese group increased by 10 times in September, according to the Association of Vehicle Manufacturers and Trader. Globally, BYD is also a big difference to Tesla with sales of 1.6 million cars this year compared to 1.2 million for the Musk Group.

Despite the recent focus on artificial intelligence and self -driving taxis, Musk will need to sell millions of additional cars and achieve many other achievements if he wants to get a proposed salary package of trillion dollars over the next decade.