Tesla Launches Affordable 'Standard' Model 3 and Model Y After US Tax Credit Ends
Tesla has responded to the end of the $7,500 US federal tax credit for electric vehicles by introducing more affordable 'standard' versions of the Model 3 and Model Y. This move comes after the tax credit's expiration on September 30th, a result of actions taken by the Trump administration.
Tesla's latest quarter saw a 7.4 percent year-on-year increase in vehicle deliveries, with a total of 497,099 vehicles delivered. Despite the expiration of the federal tax credit, Tesla aims to maintain its competitiveness in the market with the new standard models.
The 'standard' Model 3 and Model Y, introduced in the USA, come with reduced prices of around $37,000 and $40,000 respectively. However, these models offer a shorter range and have some features removed to achieve this lower price point. The changes are a direct response to the loss of the federal subsidy, which was phased out due to Trump administration policies.
Tesla's introduction of the 'standard' Model 3 and Model Y is a strategic move to adapt to the changing market conditions following the end of the federal tax credit for electric vehicles. The new models offer more affordable pricing, although with some compromises in range and features.
