Tesla reveals its long-awaited affordable models, the $34,990 Model 3 Standard and $37,990 Model Y Standard

Core Insights - Tesla has launched budget-friendly versions of its popular Model Y and Model 3, priced at $39,990 and $36,990 respectively, marking a significant move towards affordability in the EV market [1][2] - The introduction of these models comes after Tesla reported record quarterly sales, driven by consumer demand ahead of the expiration of the $7,500 federal tax credit for new electric vehicles [1][2] Pricing and Incentives - Without the federal tax credit, the starting prices for the Model 3 and base Model Y are approximately $42,500 and $45,000 in the US [2] - In New York, state incentives can further reduce the price of the Model 3 Standard to $34,990 and the Model Y Standard to $37,990 [2] Historical Context - The search for an affordable Tesla model has been ongoing since CEO Elon Musk hinted at a $25,000 EV in 2018, addressing the need for sub-$30,000 electric vehicle options [3][8] - Industry analysts have identified affordability as a key barrier to the mass adoption of electric vehicles [8] Strategic Focus - Musk emphasized the need for more affordable EVs and increased energy storage to accelerate the transition to sustainable energy during Tesla's Battery Day in 2020 [9] - Despite the focus on affordability, Musk has prioritized self-driving technology, which has led to missed deadlines for the introduction of lower-cost models [9][10]