Tesla Struggles with New 'Affordable' Model Rollout
Tesla has introduced 'affordable' versions of its Model Y SUV and Model 3 sedan, priced at $39,990 and $36,990 respectively. However, skepticism remains about their attractiveness to new buyers. The launch comes as Tesla faces declining sales, increased competition, and the loss of a U.S. tax credit.
Tesla has launched 'affordable' versions of its popular Model Y SUV and Model 3 sedan at prices of $39,990 and $36,990, respectively. While these models are designed to attract new buyers, analysts remain skeptical about their impact given the small price reduction when compared to the existing trims.
The move follows the expiration of a $7,500 U.S. tax credit, amid rising competition in European and Chinese markets. CEO Elon Musk, who previously canceled plans for a $25,000 model, aims to reverse declining sales with these lower-priced versions. However, industry experts fear they may cannibalize existing sales rather than creating new demand.
The newly-released 'Standard' versions offer a range of 321 miles and come without features such as Autosteer and rear touchscreens. First customer deliveries are expected between December 2025 and January 2026, posing crucial implications for Tesla's future prospects in a competitive market.
(With inputs from agencies.)
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