We see Tesla offering a standard range Model Y in the U.S. with 4680 batteries. Will the price go down?
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4680 Battery Model Y
Tesla has officially launched a new lower priced AWD Model Y variant and this appears to be the 4680 battery Model Y from Giga Texas. This is the first time in the U.S. that this variant has appeared in the online configurator and not as current inventory.
This is great news for Tesla and for those looking for a cheaper Model Y because Tesla has now scaled 4680 batteries enough that they can make this vehicle and allow it to be customized. The price is $49,990, which is only $3,000 less than the Model Y long range.
The range of this vehicle is 279 miles with a 0-60 time of 5 seconds, and the Model Y long range is 330 miles with a 0-60 time of 4.8 seconds. It may not seem like this vehicle at just $3,000 less is a good deal right now, but this is going to change over time.
This vehicle does not use LFP batteries, so it would not be recommended to charge this to 100% regularly. The other good thing about this is that this vehicle qualifies for the $7,500 tax credit and that makes it $42,490 after incentives.
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Future Price of This Vehicle
This vehicle is not going to remain at $49,990 for long. As Tesla ramps up 4680 battery production and gets economies of scale going, this standard range Model Y is going to eventually get into the low $40,000 range. I see this vehicle getting to $43,000 eventually, once Tesla has reached mass scale of 4680 batteries.
The other great thing is that this will also force the Model 3 RWD (standard range) with LFP batteries to go down in price, and I see that vehicle one day getting to the originally stated goal of $35,000.
The value of this vehicle is currently not worth it, in my opinion, but this is by design. As I said before, also, the 4680 batteries are not LFP, and thus should not be charged to 100% regularly due to battery degradation. However, I can see Tesla eventually making a 4680 LFP, but this won't happen in the next year or two.
Watch for the demand of this vehicle to increase as Tesla drops the price over time.
Would you get this standard range Model Y from Giga Texas with 4680 batteries?
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.
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