NEW YORK — NEW YORK (AP) — Tesla on Tuesday released new, cheaper versions of two electric vehicle models in hopes the offerings will help revive sales.
The new Model Y, which costs just under $40,000 with a stripped-down interior, follows a slump in Tesla sales that spanned much of last year due to military warfare targeting the company. The company also offers a cheaper version of its Model 3 for $35,000.
The company is under intense pressure to boost sales but faces big challenges. In addition to the backlash to fight the craze, he's fighting the odds that are being claimed after a $7,500 federal tax credit for EV purchases expired at the end of September.
Tesla shares fell more than 2.5% to $441.08 in late afternoon trading Tuesday. It closed down more than 5% on Monday after the company teased fans with cryptic social media posts about an imminent product announcement.
The stock traded near all-time records, although both sales and earnings have plunged in recent quarters.
Compared to previous models, the new Model Y comes with a shorter driving range of 321 miles, fewer audio speakers, and a cloth interior rather than Microsuede. The model also lacks a panoramic glass roof and a touchscreen in the second row.
The new Model 3 has also reduced driving distance, ambient lighting and other features.
The new Model Y faces stiff competition in the $40,000 EV range from vehicles including Ford's Mustang Mach-E, Chevrolet's Equinox and Hyundai's Ioniq 5.
