Lower-cost Teslas are a letdown for consumers, investors alike

Tesla investors and consumers were disappointed after the company unveiled its long-awaited, less expensive versions of the Model 3 and Model Y.

- BY CAROLINE PETROW-COHEN

TESLA'S new, cheaper models are still not affordable enough to trigger a buying spree, analysts said.

(JUSTIN SULLIVAN Getty Images)

Intended to help Tesla reach a broader customer base and shed its reputation as a company that caters only to the wealthy, the new models are still not affordable enough and unlikely to trigger a buying spree, analysts said.

The new models come just after the expiration of a $7,500 tax credit for new electric vehicles, which is expected to strangle growth at EV makers this month and going forward.

Tesla unveiled the vehicles on Tuesday on Chief Executive Elon Musk’s social media site, X. The Model 3 Standard has a starting price of $36,990, just $5,500 less expensive than the existing version of the Model 3. The Model Y Standard starts at $39,990, $5,000 less than its pricier counterpart.