.jpg)
Tesla Introduces Lower-Cost Model 3 and Model Y with Reduced Range and Features
Tesla: Tesla has launched cheaper "standard" versions of the Model Y and Model 3. Prices have been reduced, but features and range have also been cut. Will Elon Musk's new strategy be able to address Tesla's declining sales?
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.
Tesla's last new model was the Cybertruck, which Elon Musk called "the car of the future." However, sales figures fell short of expectations. Following this, the company has now focused on fewer feature-rich trims of older vehicles rather than new models in the EV market. In fact, these new "standard" models clearly indicate that the company is currently trying to manage sales and market pressure rather than focusing on new innovations.
Voting on Elon Musk's trillion-dollar pay package is scheduled for the next 30 days. In this context, the company is consistently reporting positive news—such as EV sales reports, FSD software updates, and now these new model launches. While Tesla's new models may not prove to be "game-changers," they do show that the company is still in the game, with a slight shift in direction.
