In an effort to counter declining sales, Tesla has officially launched more budget-friendly variants of its Model Y and Model 3 electric cars. The newly released Model Y Standard and Model 3 Standard boast an estimated electric range of 517 kilometers (321 miles). The Model Y, now accessible at a price point below $40,000, comes with a simplified interior design. This strategic move by Tesla occurs during a challenging year marked by increasing competition, an aging lineup of vehicles, and consumer sentiment negatively impacted by factors associated with its CEO. The market’s response has been swift and unfavorable, with Tesla’s stock price declining sharply. This indicates that the market may not perceive these new offerings as sufficient to significantly boost sales performance. Experts noted that the market was expecting a groundbreaking product rather than incremental updates. The revised Model 3 is now available for less than $37,000, with potential additional savings for New York residents through state incentives. Although Tesla has previously discussed plans for a substantially cheaper car, these new ‘standard’ versions fall well above the anticipated $25,000 price point. Furthermore, the timing of their release follows the recent expiry of a significant federal tax credit for electric vehicles, which could influence consumer purchasing decisions. The new Model Y features a reduced range of 321 miles, fewer audio components, and a less premium interior finish compared to earlier models. It enters a competitive segment alongside established players such as the Chevrolet Equinox EV. The Model 3 variant also includes a reduced driving range and fewer amenities, such as ambient lighting.
