Model Y SUV and Model 3 sedan models made by Tesla that are less expensive were released on Tuesday. Tesla's website says that the st...
Tesla's website says that the standard Model Y costs just under $40,000, and the standard Model 3 starts at about $37,000.
It also put out a new version of its Full Self-Driving (Supervised) driving assistance system early Tuesday morning.
It closed 4.45% lower for the EV maker.
Elon Musk's electric car company shared a teaser video over the weekend that showed a spinning part with a logo that could be a wheel cover, a fan, or a turbine. The video clip finished with the numbers "10/7," which means the reveal will happen on Tuesday.
On Sunday, Tesla shared a second video to X that showed the outline of a car's headlights at night. When people talked about what the news would be online, shares went up 5% on Monday. But on Tuesday, they went down about 3%. They wanted to know more about other new goods, like the next-generation Roadster that Musk has been talking about for years.
The base model of the Model Y doesn't have the light bars, panoramic glass roof, or plush seats that come with the more expensive versions of the SUV. The new base model of the Model Y costs about $5,000 less than the old one.
A fully charged battery in the new Model Y gives it an expected range of 321 miles, while a Long Range version with rear wheel drive gives it an estimated range of 357 miles. With the lower prices, Tesla may be able to get some buyers back after President Trump's spending bill got rid of the $7,500 government EV tax credits. EV makers, some of whom have cheaper cars, are still giving Tesla a lot of tough competition around the world, including in the U.S.
Earlier this year, it was said that Tesla was working on a Model Y that was less powerful and would cost around $30,000. That was before President Trump announced a lot of new tariffs and got rid of the tax credit. Since shipping its angular, unpainted steel pickup called the Cybertruck in late 2023, the company hasn't put out a new type of car for sale.
Musk first talked about the Cybertruck at a "unveiling" event in 2019; during his show, something went wrong, and he broke a window. The Cybertuck was never as famous as Tesla's Model 3 sedan or Model Y SUV, and in the U.S., at least eight recalls have been done on its own.
Sales of Tesla cars have been going down for several quarters in a row. The company has been trying to get investors to focus on its future as a robots and self-driving car company.
Part of the reason for the drop is that people don't like Musk because he supports far-right political groups and figures and uses angry political language. But it's also because the cars are getting old and there is more competition from brands like Volkswagen and BYD. Tesla held its "We, Robot" event in Hollywood in mid-October of last year. The event was invitation-only, and Tesla showed off a low, two-seater Cybercab concept that didn't have any pedals or turning wheels. Musk said the car that doesn't need a driver would cost around $30,000.
It wasn't yet in production when the company held its second-quarter earnings call.
Musk said at an event in late 2017 that Tesla would make a new model of the Roadster, but the car has never been made. Musk said in 2021 that the Roadster would be able to "fly," and he said last year that the elusive sports car was being remade with the help of SpaceX, his aerospace and defence company. Musk has said for a long time that a software update will allow Tesla EVs to become robotaxis.
At the moment, the company's Robotaxi test and fleet cars are driven by people, which is different from competitors like Alphabet's Waymo and Baidu's Apollo Go.
Musk has said that Tesla's Optimus robots will be able to do factory work or watch your kids, but they haven't quite made it to the market yet. At the same time, companies like Agility Robotics and Unitree are already offering humanoid robots that walk on two legs.
After a terrible first quarter in which Tesla's stock lost 36% of its value, it has been on a tear, rising 40% in the third quarter. It's now 12% higher than this time last year. Musk bought about $1 billion worth of Tesla stock himself in the middle of September, which helped the stock price go up.