Tesla Introduces More Affordable Model 3 and Y to Compete in Tough Market

Tesla introduced cheaper versions of its Model Y and Model 3 to boost sales amid a challenging year, but the stock reacted negatively, indicating investor skepticism about the models' impact. The new Model Y starts just under $40,000 with reduced features, and the Model 3 is available for under $37,000, though both are still above the initially promised $25,000 price point. The models face stiff competition and are affected by recent changes in EV tax credits.