Tue Oct 07 20:12:16 UTC 2025: ## Tesla Unveils More Affordable Model Y and 3 in Bid to Revive Sales
**[City, State] –** Tesla has unveiled more affordable versions of its popular Model Y SUV and Model 3 sedan, starting at $39,990 and $36,990 respectively. The announcement, made Tuesday, comes as the electric vehicle (EV) giant grapples with slowing sales and increasing competition in the rapidly evolving market.
This move marks an effort to address these challenges and regain market share, particularly as the U.S. EV tax credit expired at the end of last month, effectively raising prices by $7,500. Tesla CEO Elon Musk has long promised a more accessible, mass-market EV, even teasing a $25,000 model last year.
“The desire to buy the car is very high,” Musk said in July, “People don’t have enough money in the bank account to buy it. So the more affordable we can make the car, the better.”
Tesla had been teasing the announcement on social media platform X over the weekend, posting cryptic videos hinting at a new vehicle release. While initial production was anticipated by the end of June, the company stated in July that they were only producing “first builds” with customer availability expected sometime in the last quarter of the year.
The more affordable models are crucial for Tesla to achieve its ambitious goal of delivering 20 million vehicles over the next decade. However, analysts remain cautiously optimistic.
Dan Ives, analyst at Wedbush Securities, expressed disappointment, noting that “the price point is only $5k lower than prior Model 3’s and Y’s.” He believes the lower cost model is a necessary step to stimulating demand.
Despite the company’s hopes, markets reacted negatively to the news. As of 3:15pm in New York (19:15 GMT), Tesla’s stock price was down almost four percent. The market indicates that investors were perhaps expecting a more aggressive price point.
First Piper 