Tesla Unveils Affordable EVs to Regain Market Share

• Tesla introduces cheaper Model Y and Model 3 to attract more buyers
• New versions come with reduced features and shorter range
• Despite launch, Tesla stock falls as investors remain cautious

Tesla has launched more affordable versions of its popular Model Y and Model 3 electric vehicles, aiming to boost sales during a challenging year. The new Model Y, priced just under $40,000, features a simpler interior and fewer upgrades compared to earlier models. Tesla hopes these budget friendly options will appeal to more price conscious customers.

The new Model Y offers a driving range of 321 miles but lacks some premium features like a panoramic glass roof, high end audio system, and second row touchscreen. The interior uses fabric instead of micro suede to keep costs down. Meanwhile, the updated Model 3 is priced below $37,000, with New York residents able to buy it for under $35,000 after state rebates. However, it also comes with fewer features and a shorter driving range.

Despite these launches, Tesla’s stock dropped 4.5% after investors expressed doubts. Analysts say the new models don’t offer enough innovation to significantly boost sales. The EV market is getting crowded, with strong competitors like Ford’s Mustang Mach-E, Chevrolet’s Equinox EV, and Hyundai’s Ioniq 5 all vying for buyers in the same price range.

Also Read: Global Climate Leader Joins India's STEER World to Boost Sustainable Innovation

Adding to Tesla’s challenges is the recent expiration of the $7,500 federal tax credit, which previously helped lower costs for EV buyers. With rising competition and growing consumer caution, Tesla’s cheaper models face an uphill battle to regain market share.