Tesla's Latest Model Y: Can Affordability Boost Struggling Sales?

Tesla has introduced a budget-friendly version of its Model Y SUV priced at $39,990. This move aims to recover declining sales and market share amidst stiff competition. Elon Musk's promise of affordable mass-market EVs faces challenges as U.S. tax credits end and production delays persist.

In a strategic move to regain market momentum, Tesla has unveiled a more economically accessible version of its popular Model Y SUV, now starting at $39,990. This development comes amidst heightened global competition and declining sales for the electric vehicle giant.

CEO Elon Musk, who has consistently advocated for mass-market electric vehicles, is aiming to offset the expiration of U.S. EV tax credits that effectively raised vehicle prices by $7,500 last month. While Tesla's sales peaked last quarter, projections indicate a slowdown unless these affordable options succeed.

In efforts to captivate potential buyers and reignite brand fervor, Tesla released teasers over the weekend hinting at new developments. The company faces an uphill battle with a competitive landscape in regions like China and Europe. A refreshed Model Y with added features and proposed strategic shifts towards AI and affordability underline Tesla's evolving approach.

(With inputs from agencies.)