- Tesla shares rose about 6% on Wednesday as the electric vehicle (EV) maker announced a cheaper version of its most popular vehicle, the Model Y.
- The Model Tesla's Y RWD features rear-wheel drive. and is powered by Tesla's new lithium-iron-phosphate battery.
- The Model Y RWD will have a base price of $43,990, and buyers will be eligible for the US tax credit of $7,500 for electric vehicle purchases. .
Shares of Tesla (TSLA) gained Wednesday after the electric vehicle (EV) maker reintroduced a cheaper SUV version of its most popular vehicle, the Model Y.
The company said the Model Y RWD, a rear-wheel-drive SUV, would cost $43,990, or $3,500 less than its cheapest all-wheel-drive (AWD) version. Tesla estimates it will be available this month or next.
Elon Musk's company once offered a rear-wheel drive Model Y, but abandoned it in favor of a longer-range all-wheel drive model.
Tesla said the Model Y RWD would be able to go 260 miles on a single charge and be powered by its new lithium-iron-phosphate batteries, which offer less range but longer life. than nickel-manganese-cobalt batteries. The company said Model Y RWD buyers would be eligible for the $7,500 U.S. Electric Vehicle Tax Credit.
The announcement of the cheaper Model Y came just as Tesla announced deliveries for the third quarter lower than analysts' estimates. The company blamed plant upgrades for downtime.
Tesla's share the price has more than doubled this year.
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