- Tesla (TSLA) has dropped the Model Y Rear-Wheel Drive variant and replaced it with the Long Range RWD variant, the EV giant disclosed Friday night. On Sunday evening, top executive Tom Zhu downshifted from a global role to once again focus on China. That comes amid reports of sweeping new layoffs, following major cuts in the past few weeks.
- Tesla stock rose modestly Monday.
- Tom Zhu is returning to his position as senior vice president for China. In April 2023, Zhu was named SVP of Automotive, in charge of global automotive manufacturing and sales operations.
Amidst sweeping layoffs and executive reshuffling, Tesla replaces Model Y RWD with Long Range variant and sees a modest rise in stock.
Tesla Model Y Switch
Just two weeks ago, the EV giant cut the Model Y RWD by $2,000 to $42,990, matching its lowest list price ever. The Long Range RWD will start at $44,990. Tesla lists the Model Y LR RWD range at 320 miles vs. the RWD’s 260 miles. So that’s a considerable range boost for $2,000. The Model Y LR All-Wheel Drive starts at $47,990 and has only 310 miles range, though it does have faster acceleration.
Elon Musk’s Announcement
Elon Musk posted on his social site X that many recent RWD Model Ys sold recently have 40-60 miles of extra range that Tesla plans to unlock for $1,500-$2,000. The Long Range RWD, like the prior base model is eligible for $7,500 IRA tax credits, bringing the effective price down to $37,490.
Tesla’s Tom Zhu Back To China
Tom Zhu is returning to his position as senior vice president for China. In April 2023, Zhu was named SVP of Automotive, in charge of global automotive manufacturing and sales operations. That promotion made Zhu the de facto No. 2 under CEO Elon Musk.
Need for New EVs in China
Tesla does need help in China, where competition is especially fierce. But it needs help everywhere. Arguably what the EV giant needs are new EVs, especially in China. Zhu’s de facto demotion follows several top Tesla executives who have resigned or been fired in the past few weeks. Musk has announced layoffs of more than 10% of the workforce, with the entire Supercharger and new vehicles teams eliminated last week.
More Tesla Layoffs
There were online rumors of sweeping new Tesla layoffs. Those have not been confirmed, but there do appear to have been at least some further job cuts over the weekend.
Tesla Stock
Tesla stock rose 2% to 184.76 on Monday. Shares jumped 7.7% last week after soaring 14.4% in the prior week. TSLA stock has moved above the 10-week line that had served as resistance in 2024.
Conclusion
Despite the internal reshuffling and layoffs, Tesla continues to innovate with its vehicle offerings and sees a modest rise in its stock. The return of Tom Zhu to China indicates the company’s focus on strengthening its position in the competitive Chinese market.
