Tesla introduces new Model Y variant in US priced at US$41,990

ELECTRIC-VEHICLE maker Tesla introduced a new variant of its Model Y vehicle in the United States priced at US$41,990, the company’s website showed on Monday (Feb 2).

The all-wheel drive variant of Tesla’s bestselling Model Y SUV is priced above the cheaper “standard” version.

Tesla launched stripped-down versions of the Model Y SUV and Model 3 sedan in October, priced about US$5,000 below the previous base models, as it sought to defend volumes after the EV tax credit loss.

EV demand has softened across the industry since the end of September, when the Trump administration ended US$7,500 federal tax credits, with Tesla also facing rising competition globally.

Tesla CEO Elon Musk said last week that the carmaker would end production for its Model S and Model X sedans, and instead use the space in its California factory to make humanoid robots. REUTERS