Tesla cuts Model Y SUV cost as pandemic weighs on auto sector

Tesla Inc slashed the price of its sport utility vehicle Model Y by $3,000, only four months after its launch, as the U.S. electric automaker seeks to maintain sales momentum in the on-going coronavirus crisis.

The decrease comes after price cuts in May on Tesla’s Model 3, Model X, and Model S.

The company headed by CEO Elon Musk this month posted a smaller-than-expected drop in car deliveries in the second quarter, resilient results regardless of the coronavirus pandemic that hit the global auto industry.

The Model Y now starts at $49,990, down almost 6% from its previous price of $52,990, according to the automaker’s website.

Tesla is yet to comment on this report.

The automaker started deliveries of the Model Y in March, promising a much-awaited crossover that will experience competition from European automakers such as Volkswagen AG rolling out their own electric rivals.

In April, Tesla had stated the Model Y was already profitable, marking the first time in the automaker’s 17-year history that one of its new automobiles turned a profit in its first quarter.