Tesla is rolling out new, less expensive versions of its Model Y and Model 3 electric vehicles in a bid to reverse declining sales figures. The ‘Standard’ editions, offering an estimated 517 kilometers (321 miles) of range, are designed to appeal to a broader customer base. The Model Y Standard is positioned under the $40,000 mark, and the Model 3 Standard is priced below $37,000, with New York State rebates potentially bringing the Model 3 below $35,000. Despite the price reduction, these models are a departure from Tesla’s earlier aspirations of a $25,000 EV. Market analysts and investors have shown little enthusiasm, with Tesla’s stock price declining notably. The new offerings feature a more basic interior, including fabric seats and fewer audio components, and sacrifice premium elements like a panoramic glass roof and rear-seat climate controls. This cost-cutting measure aims to compete with a growing number of affordable EVs from established automakers. The timing of the launch is also challenging, following the expiration of important federal EV tax credits, which could further impact consumer purchasing decisions. The reduced specifications, including a shorter range compared to some previous iterations, highlight Tesla’s attempt to balance affordability with core EV functionality.
