Move comes as third-quarter deliveries missed expectations Image Credit: Reuters file

Washington: Tesla Inc. reintroduced a Model Y crossover sport utility vehicle with rear wheel drive in the US late Monday, after reporting third quarter deliveries that fell short of Wall Street expectations.

The starting price of the rear-wheel drive Model Y is now $43,990, according to Tesla's website, and have a stated range of 389 km to 419 km. The electric vehicles likely use cheaper lithium-iron phosphate, or LFP, batteries.

The Model Y, a crossover SUV that began deliveries in March 2020, is the company's best-selling model. Tesla has tweaked prices several times since the beginning of the year as high interest rates and inflation have weighed on consumers. The company sold 435,059 vehicles globally in the third quarter and will have to pick up the pace in the next three months to reach its guidance for 1.8 million units this year.

Austin, Texas-based Tesla talked about the use of LFP in the "Master Plan Part 3" that was published in April.

"Standard range vehicles can utilize the lower energy density chemistries (LFP), whereas long-range vehicles require higher energy density chemistries (high nickel)," Tesla said in the Master Plan Part 3 manifesto. Charts in the 41-page paper show that Tesla planned to use LFP batteries in mid-sized Model 3 and Y vehicles.