Tesla unveils lower-cost Model Y in drive to reignite sales

AWANI

Tesla unveiled more affordable versions of its best-selling Model Y SUV and its Model 3 sedan on Tuesday (October 7) at $39,990 and $36,990, respectively, as the electric-vehicle maker seeks to reverse falling sales and waning market share amid rising competition.

Transcript

00:00We're going to move on to international updates with Tesla.

00:03On Tuesday, introduced lower-priced versions of its best-selling vehicles,

00:08the Model Y SUV and the Model 3 sedan priced at $39,990 and $36,990 respectively.

00:18The move is part of the electric vehicle maker's strategy to counter declining sales

00:22and shrinking market share as competition in the EV space continues to intensify.

00:27Despite the announcement, Tesla shares fell 2.1%, 1% in afternoon trading.

00:35Chief Executive Elon Musk has four years promised mass-market vehicles,

00:39though last year he cancelled plans to build an all-new 25,000 EV, Reuters first reported.

00:45Late last year, Musk said the vehicle will be priced below the key threshold of $30,000,

00:51including U.S. EV tax credits.

00:53In the United States, prices effectively rose by $7,500 at the end of last month when the credit ended.

01:01That helped go quarterly sales to a record, but expectations are that they will slow down

01:06for the rest of the year unless the affordable car comes to the rescue.

01:10Tesla has already been grappling with slowing sales of its ageing line-up as competition has grown rapidly,

01:16especially in China and Europe, where mass far-right political views have also undermined brand loyalty.

01:22Early this year, Tesla launched a refreshed version of the Model Y with improvements including new light bars and a rear touch screen.

01:30Musk has been pivoting the company toward artificial intelligence, focusing on robotaxis and humanoid robots.

01:37Tesla has said it will launch more affordable vehicles in its line-up but has not provided details.

01:42Sources have told Reuters the EV maker also plans to roll out a stripped-down version of its Model 3 mid-size sedan.

01:50Affordable cars will also be key to Tesla delivering 20 million vehicles over the next decade,

01:55one of the several operational and valuation milestones set by the company's board

02:00as part of its proposed $1 trillion pay package for Musk.

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