Tesla has released a lower-cost version of its Model Y in the U.S., a move aimed at boosting sales during one of the company’s toughest years in recent memory.
The new Model Y is a long-range, rear-wheel drive version priced at $44,990. With a federal tax credit, the cost could drop to $37,490 for eligible buyers. It offers a driving range of 357 miles and goes from 0 to 60 mph in 5.4 seconds. Deliveries are expected to begin in the coming weeks.
The release comes at a time when Tesla is facing declining sales and growing public criticism. Sales in the U.K. and Germany have fallen to their lowest levels in more than two years. In April, year-over-year figures showed a 62% drop in the U.K. and a 46% drop in Germany.
In the U.S., backlash toward CEO Elon Musk has fueled boycotts. His political ties have made Tesla a lightning rod for controversy, turning off some longtime supporters.
The new, more affordable Model Y is seen as a step toward regaining customer interest and steadying the company’s finances.