Tesla Cancels Cheapest Model Y As Range Would Be 'Too Low,' Musk Says

Tesla Inc. TSLA has canceled its plans to make low range Model Y vehicles, Chief Executive Officer Elon Musk said on Twitter late Sunday.

What Happened

Four different versions of Model Y were announced for production by Tesla, including "Standard Range," "Long Range," "Dual Motor AWD," and "Performance." According to Musk's latest tweets, the company will not be manufacturing the Standard Range Model Y vehicles, which were to have a range of about 230 miles.

The Tesla CEO noted that the automaker had reduced pricing on the Long Range Dual Motor Model Y version. "It will also offer a [Long Range Single Motor] Model Y in a few months, which improves affordability, while still keeping the product excellent," Musk added.

The news comes at a time when the Palo Alto, California-based automaker, is also reportedly ramping up the production of Model Y vehicles.

Price Action

Tesla shares closed nearly 10.8% higher at $1,544.65 on Friday. The shares traded about 0.2% lower in the after-hours at $1,542.00.

Image: Tesla