Tesla Introduces Lower-Cost Model 3 and Model Y with Reduced Range and Features

US EV maker Tesla has introduced "standard" versions of its best-selling electric cars, the Model Y and Model 3. They are cheaper, Tesla says, but their range and features have been deliberately cut back. Experts say this is a drastic change in Tesla's approach. It previously concentrated on innovation, but now seems to be in the game on price.

Tesla's newer "standard" models cost about $5,000 less than the older base models. But the $7,500 tax credit on the cars is now gone in the US, so prices are around $40,000. This means consumers are still paying the same price for these cars as before. The company has removed or downgraded several features in these new models, such as reduced range, fewer speakers, smaller touchscreens, cloth seats, manual steering, and limited color options. This makes Tesla's new line not only less expensive but also less "high-tech."

Tesla was once considered a symbol of innovation in the EV industry. But now the company is launching simpler versions of its older models. Compared to Ford's new $30,000 EV truck project or China's rapidly developing EV technology, Tesla's move seems like a retreat. The company's promised "game-changing" affordable electric vehicle has now been shelved. Musk has now shifted the company's focus from traditional EVs to robotaxi and robots.