A 2025 Model Y in a Tesla showroom in New York City in February. The company unveiled more affordable versions of its Model Y SUV and Model 3 sedan on Tuesday.

Tesla TSLA-Q unveiled more affordable versions of its best-selling Model Y SUV and its Model 3 sedan on Tuesday at US$39,990 and US$36,990, respectively, as the electric-vehicle maker seeks to reverse falling sales and waning market share amid rising competition.

Tesla shares fell 2.1 per cent in afternoon trading. Chief executive Elon Musk has for years promised mass-market vehicles, though last year he cancelled plans to build an all-new US$25,000 EV, Reuters first reported.

Late last year, Musk said the vehicle would be priced below the “key threshold” of US$30,000, including U.S. EV tax credits. In the United States, prices

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