Overview

• Tesla introduced stripped-down Standard trims of the Model Y and Model 3 priced at $39,990 and $36,990, respectively, according to Reuters.
• To cut costs, the variants drop or downgrade features such as the glass roof, rear touchscreen, ambient lighting, and some premium materials, with reports indicating roughly 20% lower production costs.
• The company said it completed first builds in June and plans a slower Q4 ramp, with industry sources citing an ambition to scale to roughly 250,000 U.S. units by 2026.
• Shares fell about 3% in afternoon trading after rising more than 5% on earlier teaser posts, signaling a mixed investor reaction.
• The tactic replaces plans for a new $25,000 model with decontented versions of existing vehicles as competition intensifies from global rivals, including Chinese automakers.