Tesla’s ‘affordable’ Model Y and 3 are still expensive, some say

Tesla rolled out “affordable” versions of its bestselling Model Y SUV and its Model 3 sedan, but the starting prices of $39,990 (about 1.3 million baht) and $36,990 were too high, some said, to attract a new class of buyers to the electric vehicle brand.

- ABHIRUP ROY HARSHITA MARY VARGHESE

CEO Elon Musk has touted the car as a way to tap a wider swath of buyers, saying last year that a price below $30,000, after incentives, was the key.

Tesla is trying to reverse falling sales of its aging lineup amid rising competition in Europe and China, and the loss of a $7,500 US tax credit. The new cars drop some premium finishes and features but offer driving ranges above 300 miles (480 kilometres).

Tesla's stock closed down 4.5% and Tesla bull Dan Ives, an analyst at Wedbush, said he was disappointed the cars were only about $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.

Mr Musk has for years promised mass-market vehicles, though last year he cancelled plans for an all-new $25,000 EV, Reuters first reported. Instead, he chose to build lower-priced versions based on Tesla’s current models, sparking concerns among investors and analysts that the cheaper cars would cannibalise sales of existing vehicles and limit growth.