Tesla Unveils Budget-Friendly Models Amidst Intensifying Market Competition
Tesla introduces affordable versions of Model Y and Model 3, priced at $39,990 and $36,990, to boost sales amid rising competition. Both models feature reduced specs and exclude some standard features to maintain lower prices. The move raises questions about market impact and potential cannibalization of existing sales.
Tesla has announced the release of more affordable versions of its popular Model Y SUV and Model 3 sedan, priced at $39,990 and $36,990 respectively. This strategic move comes as the electric vehicle giant aims to regain momentum in the face of declining sales and increasing competition.
These models, dubbed 'Standard', offer a range of 321 miles but come with fewer features compared to the premium versions. Notably, they exclude the Autosteer driver assistance system and rear passenger touchscreens. Deliveries for most locations are expected between December 2025 and January 2026.
Despite the attractive pricing, market experts are skeptical about the long-term demand impact. Tesla's CEO, Elon Musk, has reiterated the push for affordability, emphasizing the need for budget-friendly options to tap into unmet consumer demand. However, analysts warn of potential downsides, including the risk of cannibalizing sales of Tesla's higher-end models.
(With inputs from agencies.)
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