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Tesla reveals cheaper versions of 2 of its electric vehicle models

Michael Johnson by Michael Johnson
October 8, 2025
in Business & Economy
Reading Time: 2 mins read
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New York (AP) – Tesla has deployed new cheaper versions of two of its electric cars models on Tuesday in the hope that offers will help revive sales, but investors have spilled its stock anyway.

The new Y model, costing a little less than $ 40,000 with a stripped interior, is available in a sudden year for Tesla while it is trying to attract more customers despite an aging range, strong competition from foreign electric vehicle manufacturers and anti-Elon Musk Boycotts targeting society.

The reaction of the stock market after the news suggests that the new models are not supposed to help a lot.

“Investors were looking for something really different, not an iteration of a former product,” said Edmunds analyst Ivan Drury, speaking while Tesla’s shares have dropped sharply in the last minutes of negotiation. “I can’t imagine that it will bring the levels back to what they want.”

Tesla has also announced a cheaper version of its model 3 for less than $ 37,000. For New York residents who benefit from a state discount, the price was less than $ 35,000.

Tesla spoke of a cheaper car to use consumers more concerned about costs for years, although the two new “standard” models are well above the price of $ 25,000 promised. They come because customers should largely retain purchases in the coming months due to the recent expiration of a federal tax credit of $ 7,500 for electric vehicles.

The Tesla share dropped from 4.5% to $ 443.09 Tuesday after the closing of more than 5% on the anticipation of the new model announcement.

Compared to the previous models, the new model is delivered there with a shorter 321-mile motor range, fewer audio speakers and a fabric interior, not a micro-affective. The model also lacks a panoramic glass roof and a touch screen in the second row.

This model faces strong competition in the range of $ 40,000 for electric vehicles from vehicles, including Mustang Mach-E Ford, Equinox EV from Chevrolet and Ioniq 5 of Hyundai.

The new model 3 has also reduced the practice, ambient lighting and other features.

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