Tesla cuts Model Y price, cancels forthcoming cheaper version of SUV - Business Insider

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Tesla slashed the price of the Model Y after 4 months on sale — and nixed plans for a cheaper version of the SUV

, up 322% from the beginning of the year, even as the coronavirus pandemic continues to weigh on the autosector.

And as the company works to sustain its profits in the face of temporary shutdowns at its two main car factories, the Model Y — and its sales margins — are key. "Model Y was profitable already in its first quarter of production," Musk told analysts in April, "something we haven't achieved with any product in the past."

Eventually, the company hopes to produce the Model Y at its under-construction factory near Berlin, Germany in addition to Fremont, California and Shanghai, China. Now, all eyes turn to its first-quarter earnings report on July 22, and itsin September, all three of which could provide further catalyst for continued share gains.

"We believe Musk & Co. are slated to announce a number of new potential 'game changing' battery developments at its highly anticipated Battery Day in September," Dan Ives, an analyst at Wedbush Securities, told clients Sunday. "Technology innovations around Giga/Fremont remain the key ingredients in Tesla's success on the battery front and we believe the company is getting closer to announcing the million mile battery.

 

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This headline makes it sound like they don't have enough demand which is why they reducing pricing. But this is not the case

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