Tesla debuted cheaper versions of its best-selling Model Y and Model 3 vehicles Tuesday in a bid to capture lost market share, Reuters reported.
The new, “Standard” versions of the company’s Model Y and Model 3 vehicles will start at $39,990 and $36,990 respectively, and offer ranges of above 300 miles, the report said.
The new, lower price points are intended to attract a wider base of customers — a long-standing goal of CEO Elon Musk — but were met with a lukewarm response from market observers.
Investors are concerned that the prices are not low enough to significantly boost demand, while analysts noted that the new prices may not be competitive enough to sway buyers from an increasing number of lower-cost alternatives, particularly in key overseas markets such as China and Europe.