Tesla's New Affordable EVs: A Walmart Hoodie Moment?
Tesla launched cheaper versions of its Model Y SUV and Model 3 sedan, aiming to widen its market reach. However, critics argue that prices are still too high to attract new buyers. The reduced prices follow the expiration of a U.S. tax credit and rising competition from other EV manufacturers.
Tesla recently launched more affordable versions of its Model Y SUV and Model 3 sedan, with starting prices set at $39,990 and $36,990 respectively. While CEO Elon Musk had hoped this would attract a wider range of buyers, some experts argue the prices remain too high for significantly expanding Tesla's market.
The company's move comes amid increasing competition in both the European and Chinese markets, coupled with the loss of a $7,500 U.S. tax credit. Adaptations in the new models include a reduction in premium features, although they maintain a driving range exceeding 300 miles.
Despite the changes, Tesla's stock experienced a 4.5% dip. Analysts express concern that the moderate price cuts won't be enough to sustain growth, especially against lower-cost competitors. Investors expected greater reductions to match or undercut prices of upcoming rival models, such as Chevrolet's Equinox and Hyundai's Ioniq 5.
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