Tesla went back to basics with its latest big announcement

Core Insights - Tesla has introduced more affordable versions of its popular electric vehicles (EVs), the Model 3 and Model Y, amid a slowdown in the EV market and the end of the EV tax credit [3][4][8] - The price reductions for the Model Y Standard and Model 3 Standard are $39,990 and $36,990 respectively, representing decreases of 11.1% and 12.9% compared to their premium versions [4][5] - The new models will have fewer features compared to their premium counterparts, including the removal of the Autosteer feature and AM/FM radio [5][6] - The market reaction to the announcement was negative, with Tesla's stock dropping nearly 4.5% on the day of the launch, indicating disappointment among analysts and investors [8][10] Pricing and Features - Model Y Standard is priced at $39,990, while Model Y Premium is at $44,990, with a price difference of $5,000 [4] - Model 3 Standard is priced at $36,990, and Model 3 Premium is at $42,490, with a price difference of $5,500 [4] - The price cuts do not fully compensate for the previous $7,500 tax credit that EV buyers received until the end of September [4] Market Context - The introduction of these budget-friendly models comes as the EV industry faces a general slowdown and the expiration of tax incentives [3][8] - The expectation for a more significant announcement was not met, as the launch was perceived as lacking excitement, with only a brief video shared on social media [9][10]