Elon Musk’s electric vehicle maker began taking orders for “standard” versions of the Model 3 sedan and Model Y midsize priced at around US$40,000 or less on the company’s website.
The revamped “standard” models are priced around US$5,000 less than prior bare-bones versions of these vehicles.
The federal tax credit of up to US$7,500 per vehicle expired on Sept 30 following sweeping tax and fiscal legislation backed by President Donald Trump that phased out initiatives designed to counter global warming.
Analysts were sceptical that the latest models — which were hyped over the weekend in Tesla social media posts — will boost sales at Tesla. Wall Street has been hungry for Musk to release brand new models that wow consumers.
CFRA Research’s Garrett Nelson called the announcement “a disappointment for investors desperately hoping for new models such as the long-awaited Roadster,” he said in an email.
“One of the biggest reasons behind Tesla’s market share losses is the staleness of its vehicle portfolio,” he added.
Dan Ives of Wedbush Securities said he was “relatively disappointed” that the new prices are only about US$5,000 below prior versions of the Models 3 and Y, according to a note.
The exact price of the vehicle will be lower in US states like New York, where the vehicle is eligible for a US$2,000 state tax credit, lowering the price to US$34,900 from US$36,990. However, the website estimates the price at US$42,068 in New York when taxes and fees are included.
Shares of Tesla fell 4.1% in afternoon trading.