Tesla launches cheaper variant of Model Y SUV By Reuters

(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.

Tesla’s stratospheric rally has helped Chief Executive Officer Elon Musk surpass Amazon.com Inc (NASDAQ:AMZN)’s top boss Jeff Bezos to become the world’s richest man, Bloomberg News reported on Thursday.

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 (NASDAQ:GOOGL) Inc and ahead of social media giant Facebook Inc (NASDAQ:FB).

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.