It’s a new year, and that means it has plenty of opportunity to bounce back after taking some devastating blows in 2022. The company’s shares have hit record lows and investors have voiced their outrage. Tesla drivers have also faced the backlash from public outrage over the brand’s CEO, . Tesla has fallen from grace in many ways, but its stock price is still more than double that of older, more reputable car brands. How can Tesla win back the hearts of consumers?
A cheaper Tesla Model Y could change Tesla’s fortunes
Tesla Inc. is easily one of the most impactful automotive brands of the past decade. The electric vehicle and clean energy company was once the largest electric vehicle maker in America. While it may no longer dominate the EV market share in the United States, it is still a force to be reckoned with globally.
it is currently one of the brand’s most popular vehicles. The Model Y is expensive compared to other small electric SUVs. Here’s how Tesla could make the Model Y cheaper and thus sell more models.
How to make the Tesla Model Y cheaper
The 2023 Tesla Model Y starts at $65,990. It is significantly more expensive than the average new vehicle. Kelley Blue Book says the median price of a new vehicle was $48,681 in November. The Toyota RAV4 now starts at $27,975 (well below the average new vehicle price).
So, it’s clear that it would be advantageous to sell the Model Y at a more affordable price, but how could Tesla do that without erasing the profit margins that keep the company afloat? The simple solution is to offer a Model Y with a smaller battery and lower total range.
According to , Tesla is preparing to launch a slightly cheaper Model Y with a 4680-cell battery. This battery gives the Tesla Model Y a range of 279 miles, as opposed to the Model Y Long Range’s 330 miles. That 51-mile range reduction brings the Model Y’s price down to $61,990 based on Electrek’s findings. Damn, thanks Tesla.
The Tesla Model Y that America needs
If Tesla wants the Model Y to become ubiquitous in the next few years (which is the goal for most EV makers), affordability is a big deal. Convenience is one of the reasons why Hyundai Ioniq 5 and are becoming so popular. If the company wishes to remain a high-end luxury brand, it must address the unreliability associated with its vehicles. The Tesla Model Y that America needs must be significantly cheaper (which would mean less range) or much more reliable.