WASHINGTON (dpa-AFX) - As the company looks to halt a drop in sales and protect market share in the face of fiercer competition worldwide, Tesla Inc. (TSLA) on Tuesday unveiled new, more affordable models of its best-selling Model Y SUV and Model 3 sedan, priced at $39,990 and $36,990, respectively.
Both of the 'Standard' versions have a range of 321 miles and accelerate more slowly than the current trims. Delivery dates on Tesla's website start in December 2025 and end in January 2026.
High-end features like leather interiors, a rear touchscreen, Autosteer, and the Model Y's LED lightbar are not available on the less expensive models.
After rising 5 percent the day before, Tesla's stock fell 4 percent on Tuesday due to rumors of a new product announcement. Following the expiration of the $7,500 federal EV tax credit, which effectively raised car prices in the US and slowed sales, the introduction was made.
The CEO, Elon Musk, has made affordability a priority on many occasions. Demand is still high, but 'people just don't have enough money in the bank account to buy,' he said in July.
The new variants are released as Tesla deals with a multi-quarter delivery slump and increasing competition from automakers like Volkswagen and BYD. The Cybertruck, which was its most recent significant model release in late 2023, has had a difficult time due to recalls and low demand.
With its Optimus humanoid robot projects and Full Self-Driving software, Tesla has been directing investor attention toward robotics and artificial intelligence.
However, Musk's political views and the aging product line have hurt brand loyalty, especially in China and Europe, so investors continue to be wary.
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