In an effort to boost flagging sales and market share, Tesla has officially launched more accessible versions of its Model Y and Model 3 electric cars. These newly introduced “Standard” variants boast an estimated driving range of approximately 517 kilometers (321 miles). Despite the strategic move to offer more affordable options, investors responded by selling off Tesla stock, signaling a lack of confidence in the new offerings.
The Model Y Standard, positioned at a price point just shy of $40,000, features a simplified interior designed to reduce costs. This launch comes during a particularly difficult period for Tesla, marked by an aging product line, intensified competition from global automakers, and boycotts linked to its CEO. The stock market’s unfavorable reaction underscores a sentiment that these new models might not be enough to significantly improve the company’s fortunes.
A revised, more economical Model 3 is also part of the announcement, with a price tag under $37,000. In certain regions, like New York, state rebates could push the effective price below $35,000. Although Tesla has long discussed plans for a $25,000 electric vehicle, these “standard” editions are priced substantially higher. Furthermore, the timing of their release is less than ideal, following the recent discontinuation of a key federal tax credit for EVs, potentially leading consumers to postpone purchases.
Compared to their predecessors, the updated Model Y includes a shorter range, a basic sound system, and a cloth interior rather than premium materials. Luxuries such as the panoramic roof and a secondary touchscreen have been removed. The new Model 3 also comes with a reduced driving range and fewer comfort features, entering a crowded market alongside competitors like the Ford Mustang Mach-E and Hyundai Ioniq 5.