Tesla prices the standard versions of the Model Y and Model 3 under $40,000

Elon Musk Tesla on Tuesday unveiled lower-priced versions of the Model Y SUV and Model 3 sedan.

The electric car maker has priced the “standard” — or base — version of the Model Y and Model 3 at $39,990 and $36,990, respectively.

The standard version of both vehicles has an estimated range of 321 miles, with a top speed of 125 miles per hour.

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The top version of the Model Y, called “Performance,” has an estimated range of 306 miles, a top speed of 155 mph, a zero-to-60 time of 3.3 seconds and costs $57,490.

The Performance Edition of the Model 3 has an estimated range of 309 miles, a top speed of 163 mph, 0-60 mph in just 2.9 seconds and is priced at $54,990.

Tesla posted A pair of videos on social media over the weekend tease an unspecified announcement for Tuesday.

Tesla’s main account on X, the social media platform owned by Musk, posted a video early Sunday morning of a wheel or propeller showing the Tesla logo starting to spin before accelerating.

The video then fades to black with the date 10/7 shown, indicating an announcement of some sort on October 7th.

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Tesla posted another video later on Sunday showing the headlights of a car with the body of the car shrouded in darkness.

Reuters first reported that CEO Elon Musk has promised for years to produce mass-market cars, though last year he scrapped plans to build an all-new $25,000 electric car. Instead, it has chosen to build more affordable versions based on existing Tesla models, raising concerns among investors and analysts that cheaper cars will erode sales of existing vehicles and limit growth.

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Late last year, Musk said the car’s price would be below a “key threshold” of $30,000, including US electric vehicle tax credits.

Lower-priced versions of popular models track Tesla’s record third-quarter deliveries, which were driven by a surge in electric vehicle purchases before the federal government’s cutbacks expire. Tax credit of $7,500 On September 30th.

“The desire to buy the car is very high. (It’s) just that people don’t have enough money in the bank account to buy it,” Musk said in July during Tesla’s second-quarter earnings call. “So the more affordable we can make the car, the better.”

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Despite support from a strong third quarter, analysts expect Tesla’s annual deliveries to decline for the second year in a row to about 1.62 million vehicles, amid falling demand due to the expiration of tax breaks on electric vehicle purchases as well as political headwinds from Musk’s work with the company. Trump administration.

However, Wall Street expects Tesla deliveries to rebound to 1.85 million vehicles next year, with the cheaper model accounting for 155,610 units in 2026, according to Visible Alpha estimates.

Reuters contributed to this report.