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Guess scrapping the Model Y was a big dealINTL

Guess scrapping the Model Y was a big deal

According to reports, Tesla (TSLA) has stopped taking orders for the cheapest version of its Model Y, an electric SUV, just a month after launching the vehicle. So maybe this was a limited edition/ last-chance sales situation?!

Tesla shares slumped more than 7% in premarket trading on Tuesday after a gloomy Monday that saw shares drop 8.6%. The week’s losses mean the automaker has now turned negative for 2021.

Elon Musk addressed the Model Y issue by tweeting that the vehicle was “still available off menu,” explaining he didn’t think the range “yet meets Tesla’s standard of excellence.” But, knowing Elon, could this be a marketing stunt?

why it matters
Earlier this month, Tesla was forced to recall over 135,000 vehicles due to touchscreen failures. Paired with the fact that it is now also exposed to the volatility of bitcoin after investing $1.5b in the cryptocurrency only adds to the strain.