Topline<\/p>\n
Tesla on Tuesday unveiled plans to sell cheaper alternatives of its Model Y and Model 3 cars, its first product release in years, as Elon Musk\u2019s automaker created more affordable options for its bestselling vehicles in an apparent move to offset the recent loss of tax incentives to buy electric vehicles. <\/p>\n
Elon Musk has said his automaker would sell an affordable Model Y, as \u201cpeople don\u2019t have enough money in the bank account to buy it\u201d despite high demand.<\/p>\n
TeslaKey Facts<\/p>\n
Tesla priced its Model Y Standard<\/a> and Model 3 Standard<\/a> vehicles at $37,990 and $34,990, below the \u201cPremium\u201d alternatives at $44,490 and $41,990, respectively.<\/p>\n Tesla\u2019s last product unveiling came in 2019 when Musk promoted the Cybertruck, though deliveries for the vehicle were delayed until November 2023 following a series of production issues and battery supply restrictions.<\/p>\n The Model Y accounted for 7.4% of the global electric vehicle market through Q1 2025 and remained the bestselling EV worldwide ahead of the Model 3 and BYD\u2019s Seagull, according<\/a> to Autovista Group, an automotive data firm.<\/p>\n Tesla will use less premium materials to produce the new vehicles to offset the loss of a $7,500 federal tax credit for Americans purchasing electric vehicles, which expired last week, Bloomberg reported<\/a>, citing people familiar with the matter.<\/p>\n Production of a more affordable model began in June, Tesla executives told<\/a> investors in July, though they did not provide specifics\u2014Musk, however, suggested it would be the Model Y: \u201cThe desire to buy the car is very high, it\u2019s just people don\u2019t have enough money in their bank account to buy it.\u201d<\/p>\n Big Number<\/p>\n 497,099. That\u2019s how many vehicles Tesla delivered<\/a> through its third quarter, a record quarterly total. Of these, about 97% were Model 3 and Model Y vehicles. <\/p>\n Key Background<\/p>\n Rumors have swirled in recent days of a new product release in the lead-up to Tesla\u2019s teaser advertisements over the weekend, which featured just the headlights of a car. Photos of what appeared to be<\/a> a Model Y variant were shared on social media earlier this month, fueling speculation the automaker\u2019s latest announcement would feature the Model Y. Musk has for years promised more affordable alternatives for his Tesla\u2019s electric vehicles, though he reportedly<\/a> scrapped plans last year for Tesla to build a $25,000 model in favor of producing affordable options to its current designs. Others speculated whether the product release would be the \u201cRoadster\u201d promised<\/a> by Musk in 2017, as Musk said<\/a> last month the \u201cnew Roadster is something special beyond a car.\u201d Musk, who in 2021 said the Roadster would be able to \u201cfly,\u201d announced last year the car would be redesigned in collaboration with his SpaceX.<\/p>\n What To Watch For<\/p>\n Tesla will report third-quarter earnings on Oct. 22. Wall Street expects Musk\u2019s automaker to report earnings per share of $0.49 and $25.1 billion in revenue, according to FactSet, an increase of 22.5% and 11.6% over the previous quarter, respectively.<\/p>\n Further ReadingForbesElon Musk\u2019s Wealth Tops $500 Billion Again After Tesla Vehicle Deliveries Hit RecordBy Ty Roush<\/a>