Tesla (TSLA) stopped taking orders for the cheaper version of the Model Y Standard Range sport utility vehicle, just over a month after its launch and just a week after a price cut, according to its website. Tesla’s shares fell sharply.
X
The news was first reported by Electrek. The Model Y SR is a configuration that CEO Elon Musk once said he would never produce because the range would be “unacceptably low” in 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 reduced the base model of the Model Y by $ 2,000 to $ 39,990.
Tesla increased the price of its Performance models by $ 1,000, including Model Y, which rose to $ 60,990.
Tesla’s website on Monday also shows a $ 1,000 price cut for the Model 3 and Y Long Range Dual Engine AWD. The Model Y LR now costs $ 48,990, and the Model 3 LR costs $ 45,990.
IBD Live: a new tool for daily stock market analysis
Tesla Stock flashes bearish signal
Shares plunged 8.2% to 717.16 on the stock market today. Tesla’s shares have already passed their 50-day moving average, according to analysis by the MarketSmith chart. Investors can ease their position in Tesla shares, although they can also wait for a weekly close below the 10-week line before recognizing a sell signal.
Tesla, an IBD Leaderboard stock, issued several signs of a climax in early January, which could mean that the stock has reached its peak and may be about to retreat.
The stock has an RS rating of 96 and an EPS rating of 74. Its relative strength line is trending down.
Among traditional automakers with a growing presence in the electric vehicle market, GM fell 0.7%, Ford rose 1.1%, Nissan fell 1.3% and Volkswagen rose 2.3%.
China-based EV manufacturers Nio (NIO) fell 8% and Xpeng (XPEV) fell 7.2%.
Competition heats up in the EV market
There is no official word on why Tesla removed the standard version of its Model Y from its website. The EV maker seems to be experimenting with its offerings and price ranges, as competition heats up in the US and abroad.
Tesla has made several models of its line more accessible, since traditional automakers, such as General Motors (GM), Ford (Faith Volkswagen (VWAGY) gave a big boost to the EV market.
In Japan, the base price for the standard version of a Model 3 has been reduced to around $ 40,500. The long-range version now costs $ 47,200. Tesla expects price cuts to boost sales in Japan, where it sold less than 2,000 cars last year, and where Nissanin (NSANY) The Ariya electric crossover SUV is scheduled to hit the Japanese market later this year.
In January, Tesla cut prices for its European Model 3, according to Electrek. In Germany, the price of the Model 3 fell by 4,000 euros, and in France, the price fell by up to 6,000 euros.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
YOU MIGHT LIKE:
Is Nio Stock a purchase now?
Are Tesla shares a purchase now?
Why this IBD tool simplifies the search for the best actions
Do you want to make quick profits and avoid big losses? Try SwingTrader
IBD Digital: Unlock premium stock lists, tools and analytics today