Tesla has unveiled cheaper models of two of its most popular cars in the US as it tries to boost sales on the heels of the expiration of a key US tax credit.
But the carmaker’s shares tumbled about 4% as investors were underwhelmed by the announcement. In the US, the new versions of its Model Y mid-sized sport utility vehicle and Model 3 sedan are priced only $5,000 less than previous versions.
Tesla, which faces growing competition, has lost ground as it has been slow to offer new, more affordable vehicles, despite its release of a new Model Y version this year.
Boss Elon Musk had previously promised a cheaper car but abandoned those plans last year to focus on robotaxis and humanoid robots.
“Elon has this way of getting people to really focus on the future. And today is the downside of that,” said James Stanley, a macro analyst at StoneX, of Wall Street’s reaction.
“It’s a lower-cost EV [electric vehicle] that everyone pretty much saw…
