Elon Musk Unveils Cheaper Versions of Model 3 and Model Y

Tesla unveiled new, lower-cost versions of its popular Model 3 and Model Y, priced at $37,000 and $40,000 — roughly $5,000 cheaper than before. The move aims to boost sales following the expiration of federal tax credits for electric vehicles in the U.S.

Source The New York Times

Industry analysts view the update as Tesla’s effort to stay competitive amid slowing growth and rising pressure from rivals like BYD and traditional automakers. The new variants have simpler interiors, fewer features, and less soundproofing, but can still travel up to 320 miles on a single charge.

Elon Musk’s decision to cancel a planned $25,000 budget car has drawn criticism from investors hoping for innovation. Instead, Tesla is focusing on autonomous taxis and humanoid robots. Despite the lower prices, shares fell more than 4% after investors were underwhelmed by the announcement.