Tesla unveiled more affordable versions of its best-selling Model Y SUV and its Model 3 sedan on Tuesday at $US39,990 and $US36,990, respectively, as the electric-vehicle maker seeks to reverse falling sales and waning market share amid rising competition.
The starting price for both versions, called Standard, is roughly 15 per cent cheaper than the base Model Y, according to the company’s website. The new iterations’ 516-kilometre estimated range is 10 per cent below the premium versions. They will come with a stripped-down interior and lack Autosteer, Tesla’s driver assistance system, or touchscreens for rear passenger.
Tesla shares fell 2.1 per cent in afternoon trading on Wall Street, having jumped 89 per cent over the past six months. Chief Executive Elon Musk has for years promised mass-market vehicles, though last year he cancelled plans to build an all-new $US25,000 EV, Reuters first reported.
More affordable models are crucial for Tesla’s 20 million vehicle sales target that Elon Musk has to reach for his $1.5 trillion pay package.Credit: Bloomberg
Late last year, Musk said the vehicle would be priced below the “key threshold” of $US30,000 including US EV tax credits. In the United States, prices effectively rose by $US7,500 at the end of last month, when the credit ended. That helped goose quarterly sales to a record, but expectations are that they will slow down for the rest of the year, unless the affordable car comes to the rescue.
“The desire to buy the car is very high. (It’s) just (that) people don’t have enough money in the bank account to buy it,” Musk said in July during Tesla’s second-quarter earnings call.
“So the more affordable we can make the car, the better.”
Tesla had posted two clips on X over the weekend, igniting excitement among fans. One video shows headlights peering out of the dark and another shows what looks like a wheel spinning for a few seconds, followed by “10/7” — the US format for the date October 7.
Musk initially promised that production of the vehicle would start by the end of June. But Tesla only made what it called “first builds” of the car, it said in July, adding that it would be available for customers sometime in the last three months of the year.
