STORY: Tesla revealed a lower-cost version of its best-selling Model Y SUV and Model 3 sedan on Tuesday in a bid to put its falling sales in reverse.
The electric vehicle maker said Tuesday the new SUV starts at just under $40,000, while the sedan starts at around $37,000.
They’re calling the new models “Standard” versions, which have no Autosteer, driver assistance or rear passenger touchscreens.
They’ll also have less powerful acceleration than the current models, which Tesla is now calling Premium.
CEO Elon Musk has promised mass-market Teslas for years but canceled plans last year to build an all-new car set at an even lower price point, $25,000.
Then last October he said they would be priced below what he called a ‘key threshold’ of $30,000 once the US EV tax credit was factored in.
Last month, the tax credit ended, effectively raising prices.
That’s what helped send Tesla’s deliveries to the record levels it announced last week.
But now, unless these cheaper models come to the rescue, its expected sales will slow down for the rest of the year.
Affordable cars like it will be key to Tesla delivering 20 million vehicles over the next decade.
That’s one of several goals set by the company’s board as part of its proposed $1 trillion pay package for Musk.
