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If you have been waiting for Tesla to release the most affordable version of their crossover SUV, the Tesla Model Y, the wait is over. This is not because the company has now announced a release date, but because the cheapest $39,000 Tesla Model Y now been cancelled, with Elon Musk saying the ‘Standard Range’ model simply does not offer enough range.
We have reduced pricing on Model Y LR dual motor & will offer a LR single motor Y in a few months, which improves affordability, while still keeping the product excellent
— Elon Musk (@elonmusk) July 13, 2020
Tesla has just yesterday dropped the price of the now cheapest Tesla Model Y Long Range Dual Motor to $49,990, which is still a good $10,000 more than the promised entry-level Model Y, and Elon Musk says they will be releasing a Long Range Single Motor version in a few months for a lower price.
It seems clear however that Tesla is not currently planning to play in the mid-priced market (where the average price is around $38,000), and is looking to maintaining their price premium for some time to come still.