Tesla announced new, lower-priced "Standard" trim versions of its Model Y and Model 3 vehicles, with starting prices just under $40,000 and $37,000 respectively. This move is seen as an effort to make its electric vehicles more affordable. However, the market reaction was negative, with Tesla's stock falling over 4% to $433.09 following the announcement. Reports suggest that the cost reduction in the new Model 3 comes with the removal of several features, including heated rear seats, ambient lighting, and AM/FM radio, with some outlets highlighting the controversial inclusion of manually adjustable side mirrors. Investors were reportedly unimpressed with what they perceived as mere iterations of existing products rather than significant innovations, questioning whether the push for affordability might negatively impact profitability, especially as federal EV tax credits are expiring. Analysts noted that Tesla's ability to deliver on self-driving technology and other ambitious projects is crucial for its future success.
Tesla Stock Drops After Unveiling Lower-Priced Model 3 and Model Y Trims
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