Amid growing protests against CEO Elon Musk and experiencing the worst sales in three years, Tesla is trying to reverse its fortunes by releasing a new, cheaper electric vehicle.
The company launched a cheaper version of its Model Y in the United States on May 6. The new vehicle is a long-range, rear-wheel drive car with a cost of about $44,990. The price could be lower, including a federal tax credit for EVs, which can bring the price down to $37,490.
According to the Tesla website, deliveries for the new vehicle will begin in the next few weeks. The car’s battery has a range of 357 miles and an acceleration from 0 to 60 in 5.4 seconds.
Trying to flip fortunes
The launch of a lower-priced car by Tesla is viewed by many as a strategy to recover from recent financial losses.
Tesla, once the electric vehicle darling, is now public enemy No. 1 in the eyes of millions of American car buyers. The affiliation of Musk with the Trump administration has prompted many to boycott the electric car manufacturer.
The negative sentiment towards Tesla extends beyond the United States; the company’s new car sales in Britain and Germany fell to their lowest levels in over two years, Reuters reported on May 6.
Sales dropped 62% and 46% year-over-year, respectively, despite the increase in demand for EVs in both countries, according to Reuters.
Contributing: Charles Singh, USA TODAY
Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Reach him at fernando.cervantes@gannett.com and follow him on X @fern_cerv_.
This article originally appeared on USA TODAY: The new Model Y: Tesla releases a affordable EV amid tough year
