- tesla's ceo announces that the standard-range model y has been canceled due to disappointing range of less than 250 miles.
- musk also announced that the all-wheel-drive long-range model y is getting a $3000 price cut.
- the model y shakeup was followed by news that the tesla stock price has once again shot up, making it worth $321 billion.
tesla has long prided itself on its ability to produce cars with impressive range numbers. turns out, if an upcoming vehicle can’t get more than 250 miles on a charge, it gets the ax.
over the weekend tesla ceo elon musk shared the news (via twitter, as he generally does) that the standard-range model y was no longer coming to market because its epa-tested range would have been under 250 miles. for those looking for a cheaper model y, don’t fret too much. musk also announced a $3000 price drop for the long-range awd model y placing the starting price at $51,990.
the ceo also announced that a single-motor long-range model y will be offered in a few months that will be less expensive than the awd variant. all of this is typical for tesla, which routinely adjusts prices and trim levels on the fly. while it can be frustrating for the person who just bought a tesla, it’s good news for anyone considering purchasing a new model y.
all of this shuffling seems to make investors happy, since the company’s stock shot up once again on monday. cnbc reports that after closing high on friday, monday morning saw the stock jump 14 percent. for the year, the stock has increased an incredible 300 percent. at one point earlier this week, the the valuation of the company hit $321 billion.
as of july, tesla is already the largest automaker by market valuation. that's in direct conflict with the numbers of vehicles it builds and its profitability. it produces only a fraction of the numbers of vehicles that automakers like ford, toyota, and volkswagen manufacture.
what it has going for it is its ability to continue to dominate the ev market, something many investors believe gives it a leg up over traditional automakers.
if the stocks stay steady or continue to climb, musk is poised to receive a nearly $2.4 billion payout, according to automotive news. the ceo doesn't receive a salary but instead is paid based on meeting revenue, adjusted earnings, taxes, depreciation and amortization, and the company's trailing market capitalization over 30-day and six-month targets.
if the average market value exceeds $150 billion over the course of six months, musk will receive 1.69 million options at a discounted price of $350.02 per share. if he were to turn around and sell those shares at the current price of $1472.33, it would be a huge cash windfall.