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A cheaper version of Tesla's best-selling electric SUV debuts with a 15% price reduction, an updated engine, a new intelligent assistance package, and promises to revive sales after the end of the federal credit of up to $7.500 in the United States.
Tesla (TSLA34) has officially unveiled a new version of the Model Y 2025, its best-selling electric SUV in the world, now starting at US$ 37.990. The news arrives for compensate for the end of federal tax incentives in the United States, which offered up to US$ 7.500 in credits for buyers of electric vehicles.
With this new configuration, the Model Y now costs about 15% less than the previous version. According to Tesla's official website, the strategy aims to make the model more affordable and competitive at a time of market slowdown and reduction in global demand by electric vehicles.
According to information disclosed by Bloomberg, the automaker led by Elon Musk seeks to maintain its dominance in the premium segment while adapting its portfolio to the new American tax reality.
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Model Y 2025 promises more efficiency, range and intelligent driving
In addition to the lower price, the Model Y 2025 arrive with estimated autonomy above 500 kilometers, refined electrical performance and improvements to the traction system and energy management. O SUV It also brings updates to the autonomous driving software — one of Elon Musk's big bets for the brand's future.
The new model will be produced in Texas Gigafactory, where Tesla concentrates part of its assembly line dedicated to energy efficiency and industrial automation. The interior maintains the brand's characteristic minimalist style, with emphasis on 15 inch multimedia center, full connectivity and voice control integrated with Tesla's AI.
According to company executives, production of the new version began in June 2025, but was strategically postponed until the end of tax incentives, to ensure sustainable profit margins in a scenario of higher costs.
Elon Musk bets on technology and price cuts to face competition
In recent months, Tesla has been suffering 6% drop in global sales compared to the same period of the previous year. Although the company recorded a record quarter in deliveries, growth slowed, pressured by the advance of Chinese competitors such as BYD and Nio.
O Chief Financial Officer Vaibhav Taneja recognized that the pace of production will be slower than initially planned, as the company adjusts its supply chain and the balance between demand and profitability.
Meanwhile, Elon Musk continues to prioritize the development of humanoid robots and the fully autonomous driving technology, projects that the billionaire considers fundamental to Tesla's future. Still, the cheaper version of the Model Y emerges as a strategic move to win back the average American consumer, offering premium technology at a more affordable price.
As highlighted by Bloomberg, the launch reinforces Tesla's commitment to popularize electric mobility and reaffirm its position as an innovation leader in the global automotive sector.
With radial engines, aluminum-ion batteries, and a massive charging network, no one will be able to outpace Tesla for a long time.