Tue, 07 Oct 2025

Tue, 07 Oct 2025 Tesla shares fall as new lower-cost cars disappoint

Tesla unveils lower-cost models of two of its most popular cars in an effort to boost falling sales.

* Tesla has launched cheaper versions of its popular Model Y and Model 3 cars, priced at $39,990 and $36,990 respectively.
* The new models lack certain features found in other Tesla vehicles, but offer a lower price point as the US tax credit for electric vehicles expired.
* Despite the announcement, Tesla's shares fell by around 4% as investors were underwhelmed by the news.
* The move is seen as an attempt to boost sales and offset the loss of the government subsidy, which had increased vehicle prices for US consumers by up to $7,500.
* Analysts say the new models are not a surprise, given Tesla's previous plans to offer more affordable vehicles.
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