(Reuters) – Tesla Inc launched a cheaper variant of the Model Y, bringing its sports utility vehicle’s price closer to that of its Model 3 sedan, the electric-car maker’s least expensive car.
The new standard range Model Y is priced at $41,990, only $4,000 more than the entry level Model 3, according to the company’s website. (www.tesla.com/modely)
Shares of the carmaker, which have surged more than 700% in 2020, were up nearly 5% at $853.89 in trading before the bell on Friday.
Shares in the company jumped nearly 8% to end Thursday’s session at $816.04, putting its market capitalization at $774 billion and making it Wall Street’s fifth-most-valuable company, just behind Google-parent Alphabet Inc and ahead of social media giant Facebook Inc.
Tesla’s new Model Y variants come days after the carmaker beat Wall Street targets for 2020 vehicle deliveries, driven by a steady rise in electric vehicle adoption, but narrowly missed its ambitious full-year target of half a million deliveries.
(Reporting by Akanksha Rana and Subrat Patnaik in Bengaluru; Editing by Krishna Chandra Eluri)