Tesla has once again shaken up Israel’s car market by launching the basic version of its Model Y compact crossover at a price of NIS 169,990 (approximately $47,421 USD) including license fees and taxes, almost NIS 50,000 (about $14,000 USD) cheaper than the current Long Range priced at NIS 194,990 ($54,395 USD), reports Globes.
The Model Y RWD is equipped with a range of up to 455 kilometers and orders for the vehicle are estimated to be fulfilled between July and September.
Israel has previously received its Tesla inventory from Giga Shanghai, so this news means the latter is now producing RWD versions of the Model Y. But previously, Model Y RWD builds have been exclusive to Giga Austin in Texas with 4680 battery cells.
The launch of the Model Y is expected to create tough marketing challenges for European, Chinese, and Japanese electric vehicle manufacturers, most of which offer similar specifications but at a price that is tens of thousands of shekels higher. However, it may also result in a wave of cancellations for Tesla’s Model 3, which currently costs NIS 205,000 (approximately $62,900 USD).
Industry insiders have noted that Tesla’s pricing strategy “is not logical,” considering that the dollar and euro have strengthened against the shekel since the start of the year. As a result, car importers are expected to be forced to cut prices of rival models.
Tesla’s success in Israel is on the rise, with the company delivering just under 1,400 cars in the country during the first quarter of 2023. The launch of the basic version of the Model Y is expected to further bolster Tesla’s market share in the region.
