Tesla on Tuesday revealed plans to sell cheaper alternatives to its Model Y and Model 3 cars, its first product launch in years, as Elon Musk’s automaker created more affordable options for its best-selling vehicles in an apparent move to offset the recent loss of tax incentives for purchasing electric vehicles.
Key data
Tesla priced its Model Y Standard and Model 3 Standard vehicles at $37,990 and $34,990, below the “Premium” alternatives of $44,490 and $41,990, respectively.
Tesla’s last product unveiling came in 2019, when Musk promoted the Cybertruck, although deliveries of the vehicle were delayed until November 2023 due to a series of production issues and battery supply constraints.
The Model Y accounted for 7.4% of the global electric vehicle market through the first quarter of 2025 and remained the best-selling electric vehicle worldwide, ahead of the Model 3 and BYD’s Seagull, according to Autovista Group, an automotive data company.
Tesla will use fewer premium materials to produce the new vehicles to offset the loss of a $7,500 federal tax credit for Americans buying electric vehicles, which expired last week, Bloomberg reported, citing people familiar with the matter.
Production of a more affordable model began in June, Tesla executives told investors in July, although they did not provide details; Musk, however, suggested it would be the Model Y: “The desire to buy the car is very high, people just don’t have enough money in their bank account to buy it.”
Find out: IKEA buys American logistics technology company Locus to boost online sales
big number
497,099. That’s how many vehicles Tesla delivered during the third quarter, a record quarterly total. Of these, approximately 97% were Model 3 and Model Y.
Key background
Rumors have circulated in recent days about a new product launch on the eve of Tesla’s teaser ads over the weekend, which showed only the headlights of a car. Earlier this month, photos of what appeared to be a variant of the Model Y were shared on social media, fueling speculation that the automaker’s latest announcement would feature the Model Y. Musk has been promising more affordable alternatives to Tesla’s electric vehicles for years, although he reportedly scrapped plans for Tesla to make a $25,000 model last year in favor of producing affordable options for his designs. current. Others speculated whether the product launch would be the “Roadster” promised by Musk in 2017, as Musk said last month that “the new Roadster is something special beyond a car.” Musk, who in 2021 said the Roadster could “fly,” announced last year that the car would be redesigned in collaboration with SpaceX.
What to pay attention to
Tesla will report its third quarter earnings on October 22. Wall Street expects Musk’s automaker to report earnings per share of $0.49 and $25.1 billion in revenue, according to FactSet, up 22.5% and 11.6% from the previous quarter, respectively.
This article was originally published by Forbes US
Follow information about the world in our international section
