One of the great questions of the year ahead is 'how will Tesla make money in 2026' because right now it isn't looking good. The company had a great Q3 in terms of sales but much of that was pull-forward due to the expiration of the $7000 federal US tax credit. That ended September 30 and now Tesla is cutting prices.
The base model Y is listed at $39,990 compared to $44,990, which is a $5000 price cut (or a $2000 price increase once you exclude the credit). The base model three is listed at $36,990 compared to $42,490 previously, a $5500 cut.
Shares are down 2.8% on the news.
Now this isn't exactly an apples-to-apples comparison as these models are being called 'standard' models, which are stripped down versions of the prior 'base' models.
Elon Musk touted some kind of Tesla announcement today and it looks like this is it with the standard Model Y and Model 3 -- not exactly game changers.
The other big obstacle for Tesla going forward is that regulatory credits are largely going away by 2027 and that was a big portion of their net profit last year.
Here are the changes to the Model Y:
- The standard model offers 321 miles of range (same as prior) and 0–60 mph in 6.8 seconds.
- It’s equipped with 7 speakers, compared with 15 speakers plus a subwoofer in the Premium and Performance trims.
- FM/AM radio is not included, unlike in the higher trims
- The second-row air vents are manually adjustable, and there’s no second-row touchscreen.
- The steering wheel is manually adjustable, and the side mirrors are manual-folding and non–auto-dimming.
- The center console remains open, and the glass roof is fixed (non-opening).
- 18-inch Aperture wheels are available as an optional upgrade.
- The standard model does not include Autosteer.
- What were previously known as Long Range RWD and Long Range AWD variants are now rebranded as Premium RWD and Premium AWD.
He took out the AM/FM radio? The big one those is the removal of Autosteer, which is the highway autopilot type feature that many automakers now offer as standard. All you basically get now is traffic-aware cruise control but you have to move the wheel.
This is from Car & Driver:
The most interesting change to the interior by far is the glass roof, which only exists on the outside of the car. Yes, you read that correctly; Tesla installed a proper headliner and a bunch of sound-absorbing material behind it, pulling a Cask of Amontillado and sealing occupants off from the panoramic glass above. The company claimed this was more cost-efficient than designing and installing a fixed metal roof.
