Tesla has unveiled new and “affordable” models of its most popular Model Y SUV and its Model 3 sedan for the United States market.
According to The Guardian, Elon Musk’s electric vehicle (EV) company on Tuesday, October 7, rolled out budget-friendly versions of two of its best-selling cars to combat the declining sale and increasing market competition.
After noticing that the starting prices of Model Y SUV and Model 3 sedan, $39,990 and $36,990, respectively, were too high for the buyers, the richest person in the world, Musk, last year announced that he aimed to bring prices below the “key threshold” of $30,000.
Musk, during Tesla’s second-quarter earnings call in July, said, “The desire to buy the car is very high. (It is just that) people don’t have enough money in the bank account to buy it. So, the more affordable we can make the car, the better.”
By introducing a new and cheaper version of its EVs, Tesla is aiming to boost its sales and compete better in Europe and China and make up for the loss of a $7,500 US tax credit.
Despite being low in price, the new versions of Model Y and Model 3 have premium features and driving ranges above 300 miles (480 km).
Tesla’s affordable version of Model 3 starts under $37,000, while the New York residents will have a state rebate advantage, and for them the car will be under $35,000.
Furthermore, the stocks of the EV company dropped by 4.5% to $443.09 on Tuesday after a 5% gain a day before the new model announcement.
