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Tesla Starts Deliveries of Cheaper Model Y as One-Week Lease Cuts Hit U.S. Lineup

Investors will scrutinize margins in Wednesday's results following Tesla's push for lower prices.

Overview

  • Tesla began handing over the new Model Y Standard to customers less than three weeks after its Oct. 8 launch.
  • Lease deals were cut for roughly a week to $329 per month for Model 3 RWD, $449 for Model Y, and $699 for Cybertruck, with Tesla noting prices will revert on Nov. 1.
  • Standard trims of Model 3 and Model Y undercut previous U.S. entry prices by about $5,000 to $5,500.
  • Cost cuts come from a smaller battery and motor and the removal of features such as rear touchscreens, power-folding mirrors, and seat-side adjustment buttons, while keeping an advertised range near 321 miles.
  • Analysts expect pressure on profit margins as Tesla trades price for volume and regulatory-credit income wanes, setting up a key test in the upcoming earnings report.