Tesla Launches Cheaper, Simplified Model Y and Model 3 to Counter Low-Cost EVs
The trims reflect a shift from the long-promised $25,000 car toward a focus on the autonomous Cybercab.
Overview
- Tesla priced the new Model Y just under $40,000, set a premium Model Y at $44,990, and introduced a standard Model 3 starting at $36,990.
- The company aims to keep its lineup among the least expensive electric vehicles sold in the United States to compete with Chinese makers.
- Cost cuts come through visible changes, including a different roof and conventional headlights on the lower-cost Model Y.
- Both new variants include fabric seats, fewer speakers, no AM/FM radio, and no rear-row screen compared with higher trims.
- Shares fell 4.45% during Tuesday trading and edged up 0.24% after hours in New York, reflecting a muted investor response.