Tesla rolled out new, cheaper versions of two of its electric car models on Tuesday in hopes the offerings will help revive flagging sales but investors dumped its stock anyway.
The new Model Y, costing just under $40,000 with a stripped-down interior, comes in a brutal year for Tesla as it tries to attract more customers despite an aging lineup, stiff competition from foreign EV makers, and anti-Elon Musk boycotts targeting the company.
The reaction from the stock market after the news broke suggests the new models are not expected to help much.
“Investors were looking for something truly different, not an iteration of a old product,” said Edmunds analyst Ivan Drury, speaking as Tesla stock dropped sharply in the last minutes of trading. “I can’t imagine this will bring levels back to what they want.”
Tesla also announced a cheaper version of its Model 3 for under $37,000. For
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