Tesla (NASDAQ:TSLA) has a $39,990 version of the Model Y listed on its website in a move that has been highly anticipated following the expiration of the electric vehicle tax credit. The standard version of the rear-wheel drive Model Y has 325 miles of range and a top speed of 125 miles per hour.
The starting price of the lower-cost Model Y is roughly 15% cheaper than the base version, according to the company’s website.
Speculation about a lower-cost Model Y has been ramping up for several months after it became apparent that Tesla (NASDAQ:TSLA) was not going to introduce a new model priced around $25K. While Tesla (TSLA) topped expectations with its Q3 deliveries report, analysts do not expect that tally to be matched in the next couple of quarters due to the pull-forward of electric vehicle demand to capture the EV tax credit.
Shares of Tesla (TSLA) were down 2.7% at 2:40 p.m., but are still up more than 20% over the last six weeks.