Analysts and business leaders react to the new, more affordable Tesla models

Core Viewpoint - Tesla has introduced its two most affordable electric vehicle models, the Model 3 Standard priced at $36,990 and the Model Y Standard at $39,990, which are approximately $5,000 cheaper than previous models but come with fewer features [1][2]. Group 1: Analyst Reactions - Analysts from Wedbush expressed disappointment with the pricing of the new models, stating that while the lower cost was anticipated, the price point remains relatively high compared to other vehicles in the market [6]. - Dan Ives noted that the new models could help boost demand, especially with the expiration of the EV tax credit, but he was still "relatively disappointed" with the launch [6]. - Ross Gerber highlighted that the introduction of more affordable models may alter consumer perception of the Tesla brand, making it more comparable to Toyota rather than a luxury brand like Mercedes [9][10]. Group 2: Market Implications - Morningstar analyst Seth Goldstein suggested that the new models could help offset the impact of the expiring EV tax credit, potentially increasing deliveries by making the vehicles accessible to a broader consumer base [15][16]. - Gene Munster praised the lower-priced models for enhancing Tesla's competitive position against cheaper competitors, emphasizing that Tesla's software advantage remains a key differentiator in the EV market [20].