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Tesla Cancels Long Range RWD Model Y, Let's Preorders Keep Lower FSD Price: Reports

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Benzinga EV Insights
·2 min read
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The Tesla Inc (NASDAQ: TSLA) Model Y has been a popular vehicle, with the company delivering 161,650 Model 3 and Y vehicles in the last quarter of 2020. But one popular variant of the Model Y that customers were waiting for seems to have been canceled.

Teslarati says Tesla is canceling preorders of the rear-wheel drive (RWD) long-range Tesla Model Y.

Back in July, CEO Elon Musk tweeted that Tesla would offer the vehicle as a lower cost option that still had a great electric range compared to the competition. The good news for reservation holders is they can keep their offered $7,000 price for FSD if ordering a different trim, compared to today's price of $10,000.

Earlier this year, Tesla did end up offering the standard range Model Y, despite Musk previously saying this car would not be available. The car has a range of 244 miles, just shy of what Musk said was acceptable at 250 miles. The range, features, and price of the vehicle are still very competitive with other choices in the market including Ford's (NYSE: F) Mustang Mach E.

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Benzinga's Take: Although Musk said Tesla would release this vehicle, it would make sense the release of the standard range Y would make this vehicle unnecessary. The standard range Y fits in nicely to compete with other brands, while also offering a lower price for those that need it. And customers with an LR RWD order can now move their $7,000 FSD package to the lower ranged Model Y, giving a self-driving Model Y for $48,990, versus the $51,990 price it would cost to order the same vehicle today.

Photo courtesy of Tesla

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