The Tesla Model Y and Model 3 Standard are cheaper, but they’re still not cheap

Nearly two decades ago, CEO Elon Musk promised that Tesla would make an affordable electric car, as he does. Put it down In 2006, “to help accelerate the transition from a hydrocarbon extraction and burning economy to a solar electric economy.” Is he finally here? Kind of, sort of.

On Tuesday, Tesla announced the new Model Y and Model 3 Standard, versions of the popular compact SUV and sedan that have been stripped of some upscale touches and features to bring the price down to $39,990 and $36,990, respectively. Both are about $5,000 cheaper than the premium versions, which goes a long way — but not all the way — toward getting the $7,500 tax credit back. It was repealed by the GOP-led Congress last summer.

The price point also places Tesla’s latest models firmly in the “more affordable” EV camp. The average transaction price for electric cars was last month More than $57,000According to Kelly Blue Book.

But the new variants, which closely resemble the older versions of the Model Y and S, may not be enough to convert new customers to the electric side. “The market was crying out for a cheaper electric vehicle,” says Joseph Yuen, a consumer analyst at Edmunds. He says the electric car, whose price is approaching $30,000, may catch the attention of some drivers who were skeptical of electric cars. This is especially true in the new world of car tariffs, where the price of any new car is expected to rise, regardless of how it is fueled. Mark in thousands of dollars.

Yun doubts that a 10 percent price cut will be a big winner for Tesla. “Instead of iterating and improving its products more meaningfully, what[Tesla]decided to do was almost undermine itself a little bit,” Yun says. For many years, the electric car maker has been setting the pace for the rest of the sector. He says this new alternative “seems like a classic move for the old car industry.”

To shave a few thousand off the cost of the Model Y and 3, Tesla made some cuts and tucks, much to its frustration, auto-speak.