One of the primary criticisms of Tesla (NASDAQ: TSLA | TSLA Price Prediction) is that its models are old. The fact that their software is updated “over-the-air” isn’t good enough for some investors. It has killed the Model S and Model X. One reason Tesla gave was that it needed manufacturing for “AI-driven” technology. However, neither had sold well in years.
With two models gone, Tesla has the Model 3 and Model Y (and, of course, the Cybertruck). Each can be modestly customized with different engines and rear-wheel or all-wheel drive.
Against Tesla’s decision on the number of models. China’s BYD has over a dozen. Even Ford’s failed EV efforts were based on three models.
Tesla’s Model Y L is a new model, but that distinction may be based on who is making the judgment. The car does have an extended wheelbase, which Tesla has never had with any of its other cars.
The Model Y L is targeted primarily at the market in India. It is available in China as well. Tesla’s sales in China have been hurt because there are dozens of EV companies, which have led to deep discounts. Because China is the largest EV market in the world, Tesla cannot afford to fail there.
One notable aspect of the Model Y L’s target market is that there is no sign it will be sold in the US or Europe. Tesla’s EU sales have been sliding for months, although they started to level out recently.
One thing Tesla promised to deliver is a model priced below $25,000. Car experts in the US believe that high EV prices are a primary hurdle to adoption. The lowest-priced Model 3 costs $34,000. However, if customers want AWD, the price jumps to $47,000
It is hard to imagine that Tesla management has not considered how to gain customers through a new model line-up. For now, for the US, that isn’t happening. But, investors can hope the Model Y L will hit America’s market soon.
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