In an effort to combat a downturn in sales and regain market share, Tesla has introduced lower-priced variants of its Model Y and Model 3 electric cars. The newly released Model Y Standard and Model 3 Standard boast an estimated range of 517 kilometers (321 miles) and are positioned to attract a broader customer base. The Model Y is available for just under $40,000, while the Model 3 can be purchased for under $37,000. For New York residents, state rebates could bring the Model 3’s price below $35,000. Despite the company’s efforts, the stock market reacted unfavorably to the announcement, signaling investor disappointment. Analysts pointed out that the market was looking for innovative new products, not just cost-reduced versions of existing ones. These new models, though more accessible, still carry a price tag significantly higher than the previously rumored $25,000 entry-level vehicle. The launch coincides with a period where consumer spending on EVs might be impacted by the lapse of a $7,500 federal tax credit. The Model Y Standard comes with a simplified interior, including fewer speakers and fabric upholstery, and lacks a rear touchscreen and a glass roof. It now faces intense competition from established players in the mid-$40,000 range, such as the Ford Mustang Mach-E and Hyundai Ioniq 5. The Model 3 Standard also features a reduced driving range and fewer premium interior features.
