Tesla (TSLA) has stopped receiving orders for the cheaper version of the Model Y Standard Range sports utility vehicle, just over a month after its launch and just a week after a price cut, according to its website. Tesla shares fell sharply.
The news was first reported by Electrek. The Model Y SR is a configuration that CEO Elon Musk once said would never produce because the range would be “unacceptably low” at less than 250 miles.
Tesla first introduced this version of the Model Y Standard Range RWD with a range of 244 miles in 2019. Last week, Tesla cut the base Model Y by $ 2,000 to $ 39,990.
Tesla raised the price of its Performance models by $ 1,000, including the Model Y, which rose to $ 60,990.
Tesla’s website on Monday also shows a $ 1,000 price cut for the long-range dual-AWD Model 3 and Y. The Model Y LR now costs $ 48,990 and the Model 3 LR costs $ 45,990.
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Tesla Stock Flickers Bearish Sign
The shares fell 8.55% to close at 714.50 on the stock market today, losing almost all of its shares since the new year began. Tesla shares are now above their 50-day moving average, according to MarketSmith’s graphical analysis. Investors could lighten their position in Tesla shares, although they could also wait for a weekly close below the 10-week line before recognizing a sell signal.
Tesla, an IBD leaderboard stock, showed several signs of a climax in early January, which could mean the stock has peaked and could be due to a pullback.
The stock has an RS rating of 96 and a BPA rating of 74. Its relative strength line is trending downward.
Among legacy automakers with a growing presence in the electric vehicle market, GM fell 1.1%, Ford was up 1%, Nissan was down 1.15% and Volkswagen was up 2.2%.
China-based electric vehicle stocks Child (NIO) fell 7.9% and Xpeng (XPEV) fell 7%.
Competition Heats Up in the Electric Vehicle Market
There is no official information on why Tesla removed the standard version of its Model Y from its website. The EV maker appears to be experimenting with its offerings and price points as competition intensifies in the US and abroad.
Tesla has made several models in its lineup more affordable, as legacy automakers like General motors (GM), Ford (F) and Volkswagen (VWAGY) makes a big push in the electric vehicle market.
In Japan, the base price of the standard version of a Model 3 was reduced to about $ 40,500. The long-range version now costs $ 47,200. Tesla expects price cuts to stimulate sales in Japan, where it sold fewer than 2,000 cars last year, and where Nissan‘s (NSANY) The Ariya electric crossover SUV is scheduled to hit the Japanese market later this year.
In January, Tesla cut the prices of its European Model 3, according to Electrek. In Germany, the price of the Model 3 dropped 4,000 euros and in France the price dropped to 6,000 euros.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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