Tesla Debuts ‘Affordable’ Model Y and 3 That Strike Some as Too Expensive

Tesla rolled out “affordable” versions of its best-selling Model Y SUV and its Model 3 sedan, but the starting prices of $39,990 and $36,990 struck some as too high to attract a new class of buyers to the electric vehicle brand.

Tesla’s stock fell 4% and Tesla bull Dan Ives, an analyst at Wedbush, said he was disappointed that the cars were only about $5,000 cheaper than the next trims of the models.

The new versions, called Standard, cost more than what the previous models started at, including a $7,500 tax credit that expired at the end of September.

The much-awaited unveiling is crucial for Tesla as it pushes to reverse falling sales and waning market share amid rising competition in Europe and China, and the loss of the U.S. tax credit.

CEO Elon Musk has for years promised mass-mar