Tesla rolled out “affordable” versions of its bestselling Model Y SUV and its Model 3 sedan, but the starting prices of US$39,990 and US$36,990 were too high, some said, to attract a new class of buyers to the electric vehicle (EV) brand.
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CEO Elon Musk has touted the car as a way to tap a wider swathe of buyers, saying last year that a price below US$30,000, after incentives, was the key.
Tesla is trying to reverse falling sales of its ageing line-up amid rising competition in Europe and China, and the loss of a US$7,500 US tax credit. The new cars drop some premium finishes and features but offer driving ranges above 300 miles (480km).
Tesla’s stock closed down 4.5 per cent and Tesla bull Dan Ives, an analyst at Wedbush, said he was disappointed the cars were only about US$5,000 cheaper than the next-level trims of the models.
The new standard versions cost more than the cheapest US models in September, when the now-expired tax credit was included.
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