Tesla Launches Lower-Priced Model Y and Model 3, but Analysts Say Still Too Costly

Tesla Inc. (TSLA, Financials) came out with cheaper versions of its Model Y and Model 3, but investors and analysts suggested the new prices might not be enough to get more people to buy them.

You can get the automobiles today. They have a range of more than 300 miles and less high-end equipment. CEO Elon Musk had once promised a sub-$30,000 Tesla but instead opted for cheaper trims of existing models.

Shares fell 4.5% after the announcement. Wedbush analyst Dan Ives called the move a pricing lever, not a product catalyst, while others warned that Tesla's new prices still leave it vulnerable to cheaper EVs from China and traditional automakers.

Deliveries are expected to start in late 2025. Musk said affordability remains key, noting, The desire to buy the car is very highit's just that people don't have enough money.