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PREVIOUS COVERAGE: Tesla unveils cheaper version of Model Y
The Model Y Standard is rear-wheel drive and will start at $39,990.
LOS ANGELES - Tesla released new, more affordable versions of its Model 3 and Model Y electric vehicles on Tuesday.
The move aims to boost sales, which have been lagging due to various factors, including competition and public backlash.
What we know:
On Tuesday, Tesla launched new, cheaper versions of its Model 3 and Model Y, priced at under $35,000 and just under $40,000, respectively.
These new models have a reduced driving range and fewer interior features compared to previous versions.
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The Model Y, for instance, has a 321-mile range and a fabric interior, and it lacks a panoramic glass roof and a second-row touchscreen.
The Model 3 also has a shorter range and fewer features like ambient lighting. This strategy comes after a year of slumping sales for the company.
The company’s stock fell by more than 2.5% on Tuesday to $441.08, despite having teased an announcement on social media.
The backstory:
Tesla has been under significant pressure to increase its sales and profits, which have plunged in recent quarters even as its stock price has been trading near all-time highs.
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The company is dealing with several challenges, including public boycotts targeting its CEO, and a likely drop in demand after a federal tax credit for electric vehicles, which was worth up to $7,500, expired at the end of September.
The new Model Y also faces stiff competition from other electric vehicles in the $40,000 price range, such as the Ford Mustang Mach-E, Chevrolet Equinox EQ, and Hyundai Ioniq 5.
The Source: This report is based on information provided by Tesla in its product announcement, as well as an analysis of the company's financial performance and stock market activity. Additionally, it draws from public information about federal tax credits for electric vehicles.