Core Viewpoint - Tesla's recent introduction of lower-priced versions of its Model Y and Model 3 appears to be a reactive measure rather than a strategic initiative aimed at making electric vehicles more accessible to the mass market [2] Sales Performance - Tesla's vehicle deliveries for the first nine months of 2025 decreased by 6.4% year over year, despite strong sales in the third quarter, which were partly driven by a rush to take advantage of the federal EV tax credit before its expiration [3][6] - The company had previously projected a 20% to 30% growth in EV sales by 2025, but this expectation has not materialized as anticipated [3] New Vehicle Offerings - The newly introduced lower-cost trims include a Model Y standard priced just under $40,000 and a Model 3 standard priced just under $37,000, which are expected to boost sales [4] - These lower-cost models align with management's earlier statements, indicating that the affordable model would primarily be a variant of the Model Y rather than a completely new model [4] Market Strategy - The introduction of lower-priced models is a strategic response to the removal of the federal EV tax credit, which is expected to enhance sales of the Model Y and Model 3 in the U.S. market [5] - The price differences between the new lower-cost models and the higher-end variants are $5,000 and $5,500, respectively, suggesting that the new trims are unlikely to cannibalize sales of the more expensive models [5] Future Outlook - While Tesla may face challenging sales quarters in the U.S., the introduction of new models is anticipated to support sales growth [6] - The company’s future growth is expected to be significantly influenced by the rollout of fully autonomous robotaxis and publicly available fully autonomous full self-driving software [6]