Tesla stock slumps after initial jump on X posts teasing product launch, reported to be cheaper Model Y

Core Viewpoint - Tesla's shares declined after the announcement of a new, stripped-down, and cheaper version of the Model Y SUV, which is designed to offset the loss of federal tax credits [1][2]. Group 1: Product Announcement - The new Model Y will lack certain features and use less premium materials to reduce costs [2]. - This is the first major product announcement since October 2024, when Tesla introduced its self-driving "Robotaxi" [2]. Group 2: Delivery Performance - Tesla reported a 7% increase in EV deliveries for the three months ending in September compared to the same period last year, exceeding Wall Street expectations [2]. - Analysts attribute the delivery gains partially to the expiration of the federal electric vehicle tax credit at the end of September [3]. Group 3: Historical Context - Tesla's deliveries faced challenges in the first half of 2025, with declines of approximately 13% year-over-year in both the first and second quarters [4]. Group 4: Upcoming Events - Tesla is scheduled to report earnings on October 22, followed by the annual shareholder meeting on November 6 [5].