Tesla on Tuesday introduced lower-priced versions of two of its electric vehicle models in an effort to boost weakening sales but investors weren’t impressed by this as the stock of the company still went down after the launch.
The automaker is already going through challenging times and struggling with slowing demand, an aging product lineup, rising competition from foreign EV makers, and boycotts linked to CEO Elon Musk. However, the market’s reaction to the announcement indicated skepticism that the new models would meaningfully revive Tesla’s sales momentum.
Tesla launched the new Model Y, priced at just under USD 40,000 and comes with a simplified interior.
Tesla also announced a cheaper version of its Model 3 for under USD 37,000. For New York residents taking advantage of a state rebate, the price was below USD 35,000.
Tesla has talked about a cheaper car to appeal to more cost-conscious consumers for years, though the two new “standard” models are priced well above the USD 25,000 price tag promised. They come as customers are widely expected to hold off from purchases over the next several months due to the recent expiration of a USD 7,500 federal tax credit for electric vehicles.
Compared to previous models, the new Model Y comes with a shorter 321-mile driving range, fewer audio speakers and a fabric interior, not microsuede. The model also lacks a panoramic glass roof and a touchscreen in the second row.
This model faces stiff competition in the USD 40,000 range for EVs from vehicles including Ford’s Mustang Mach-E, Chevrolet’s Equinox EV and Hyundai’s Ioniq 5.
Tesla stock fell 4.5 per cent to USD 443.09 on Tuesday after closing the day before up more than 5 per cent in anticipation of the new model announcement.
(With Inputs From AP)
For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on India.com.
