Core Viewpoint - Tesla has launched its cheapest models, the Model 3 Standard and Model Y Standard, priced at $36,990 and $39,990 respectively, which are approximately $5,000 cheaper than previous models, but with downgraded features. The market reaction has been mixed, with Tesla's stock dropping by 4.45% following the announcement [2]. Group 1: Analyst Reactions - Gene Munster from Deepwater Asset Management praised the new lower-priced models, stating they will enhance Tesla's competitive edge against more affordable offerings from rivals [2]. - Dan Ives from Wedbush Securities expressed disappointment, noting that while the lower-priced models are anticipated, they still remain relatively high compared to competitors. He believes these models could boost demand, especially with the expiration of EV tax credits, but he expected more significant price reductions [5][7]. - Ross Gerber criticized the new models, suggesting they dilute Tesla's luxury brand perception and likened the company more to Toyota than a luxury brand like Mercedes. He argued that the price reduction might harm sales of higher-priced models [7][9]. Group 2: Market Implications - Seth Goldstein from Morningstar indicated that the introduction of more affordable models could help Tesla mitigate the impact of the expiring EV tax credits, potentially increasing delivery volumes by making the vehicles accessible to a broader consumer base [10].