Tesla Unveils Cheaper Model Y And Model 3—Countering Tax Credit Loss

On Tuesday, Tesla unveiled plans to sell cheaper alternatives of its Model Y and Model 3 cars in an apparent move to offset the recent loss of tax incentives to buy electric vehicles. Read more: [https://go.forbes.com/4iifde](https://go.forbes.com/4iifde)

So same car, same price but less product?

So it's going to be crappier than the cars they were having trouble selling in Q1 & Q2, but cost more than those did after the incentive. Yeah, that should fix everything....

44k for an all plastic shitbox. Should sells 100s of units a month, and none where chinese EVs are avaliable

stocks rise 200%

They are already made with cheap parts. To make them more cheap, are they removing one tire now?

"Same" car as in they're using the same chassis, slightly less price, a ton of features taken out.

Finally a totally new mo... oh wait another Model Y

No back seat or radio

💩 Elon did the Monterrey factory announcement 2.5 years ago, with production expected to ramp up over this year. Yet here we are. What a colossal train wreck.

fElon has invented decontenting? Praise be!!

>Musk, however, suggested it would be the Model Y: “The desire to buy the car is very high, it’s just people don’t have enough money in their bank account to buy it.” Literally econ 101. Like the first day of class.

The mechanical door handles on the inside so it’ll be a button to get in or out, that way cremation is guaranteed and you won’t be around to complain about it.

"Our demand would be infinite if prices didn't exist!"

looking at the model comparo, JFHC. 6.8 seconds 0 to 60 . . . that's LEAF territory Speakers down to 7 Parcel shelf cover now extra $150 LOL, nickel and diming and the kicker, apparently no lane-keeping, just "traffic-aware cruise control" unless you get the FSD package

lol

I guess the shame of having directly supported a person like Elon is free? MF’er gleefully fired tens of thousand of people that weren’t even on his payroll indiscriminately, cut World Aid funding, committed open/blatant securities fraud and threw an Sieg Heil on stage and people are still buying his cars. 🤦🏻‍♂️

it's their only answer unless they're going to actually do a redesign. They're not very agile, even for a car company. So this is a quick bandaid that they absolutely need, as reducing capacity in their already under-utilized factories will absolutely kill the economics of their business. Fortunately for them, the primary thing (the stock, and in particular how much of it elon has) is heavily grounded in misperception and speculation and so reality has no bearing whatsoever on $tsla

All subsidies are generally split about 50:50 between the manufacturer and the customer. That's Econ 101. Prices will generally drop after losing a subsidy, though by less than the subsidy. Watch for the same from solar.

glass roof covered with a headliner. First-principles design manual folding mirrors steel hood instead of aluminum. Genius.

Who really is going to buy any of these, esp. when you can get a barely used ‘24 or even ‘25 model year versions for less & MUCH better equipped??

Free cremation?  Now we are talking some serious cost savings Edit: for spelling

Seriously, the cars are like tin cans. How can they get cheaper? They were designed to be cheap with one screen, glass roofs, etc.

Kind of funny how people are saying the Tesla car models are stale and Musk's idea is to double down on it

How the stock isn't down 50% on the day after this "unveiling" (lol) is entirely beyond me. They did NOTHING. This is the automotive equivalent of "the dog ate my homework".

Tesla is striking me more and more as a totally rudderless ship. They keep throwing bizarre and pointless things at the wall hoping it will stick. Cybertruck? failure. FSD? As of now, still FAR from complete software. A "value" car thats almost the cost of the premium? Spare me! And Elon thinks he is worth an obscene pay rise? Share holder prove their lack of intelligence if they give this clown more money now. I love how investors say "without Elon the company is doomed to fail"...I mean if the company really is that fragile, just let it die already.

They just keep selling the same models over and over, it hilarious. Blew their wad on the dumbest cyberflop and now what?

What

the funny thing is I count 6 major TSLA drops since S&P inclusion. Coming into the Q2 EC I figured we'd see #7 by 2Q26, and nothing in the ~3 months since then has falsified that expectation.

Remember my first time in a model 3. I was actually really excited. It was before Elon openly a nazi. I was so disappointed sitting in it. I remember the floor feeling like wood covered in felt. Interior was so loud. And I felt like I had to tilt my head to the left sitting in the front passenger seat just to get clearance. Such a cheap feeling car. My brother in law got a newer model 3. Still feels cheap.

Tires will be offered as an option

Not just that, the coffin and the ride there are included.

These used cars will be super cheap within five years.

Is it made by a mega billionaire Nazi?

Completely stopped innovating. This reads like they don’t want or expect anyone to actually buy these.

He threw two of those Nazi signs.

Sometimes to a luxurious Vegas hotel/casino. But Tesla did the investigation and found fireworks for that one, so nothing to see there folks.

well… thought, there would be some kind of model 2/Q. Instead we get… the same we already had? Where‘s the difference to the actual standard RWD?

It will be included in the cost calculator along side gas savings.

Dang. Finance cost for the new ultra low cost model y is nearly the same as my 2021 3 LR AWD that I got for $50k without the tax credit.

Wow.. couldn't even be arsed to take real photos, and instead generated AI slop in the X announcement photo: https://pbs.twimg.com/media/G2rbTxAbIAIr405?format=jpg&name=4096x4096

Tesla golf cart

badge tan fuzzy salt dolls detail grandfather crown attraction workable *This post was mass deleted and anonymized with [Redact](https://redact.dev/home)*

The two cheaper options are compelling, but isn’t Tesla supposed to be an AI company? Why do they want to sell more cars to the masses? Meanwhile it’s been over 3 months since the launch of Tesla robotaxi… still zero unsupervised mile…

Elon fans “FSD is flawless, already ready for robotaxi” Also Elon fans “FSD v14 will be a massive improvement” My brain just can’t comprehend this

I’d still rather a kick in the nuts over buying another Tesla. So, no thanks.

Seriously, I believe it was three.

> They're not very agile, even for a car company. I think that fact is actually very interesting. Musk acts like Tesla is some nimble startup yet it takes them years and years to do a standard refresh.

It’s honestly scary. And the CEO thinks he’s worth a trillion bucks? Revolting.

oof. big oof from Tesla. had they cut it another $5k maybe it would get some traction

They've even dropped the Am/Fm radio. I bet just like the 0-60 reduction this is just a software nerfing, not actually saving them a penny in production costs. 🤡🤡🤡🤡🤣🤣🤣🤣

actually, you get paid to be cremated, well, your estate does. win, win for suicidal drivers who hate their family, but still wish them well.

Well if their competitors are also raising prices after the incentives are gone, maaaybe. Doubt it tho. I did hear that Hyundai just dropped prices.

Hyundai thanks Elon for his continued incompetence

Oh wow! They cut out about $10,000 of "features" to give a $5,000 discount. What a win for the EV buying public.

because tesla actually makes money and has economies of scale. They don't refresh if it's not broken

Just saw a brand new Model Y refresh in a local SoCal parking lot. Some people don't GAF about supporting Not-Sees.

No. Worse car, same price, still embarrassing to be seen in.

I wonder what the fanboys have to say about their "fat margins"...

They should have offered these before the tax credit expired…….

Well this may be the beginning of a YoY sales decline. And without tax incentives it's likely 2026 will be a down year as well. And that's all with their 2 most popular models being refreshed in the last 2 years. Which means major redesigns are likely years away... Eventually Tesla will have to make an all new generation of their vehicles or sales will likely fall below 1M per year.

I don't think so. Tesla will launch unsupervised this year at least in austin. Then the perception around the self driving solution changes FSD v14 is fundamentally different than v13 is it no longer has fantasy driving. It doesn't go if occlusion doesn't allow the car to know what is ahead. It brakes more aggressively for pedestrians and if someone slams on the brakes on the interstate it reacts quicker and brakes harder instead of the hypersmoothed fantasy driving that was in v13 And v14 has every missing ability. Train track/bar gate understanding, school buses, thin chains blocking parking lots, better perception overall You can literally see a video on X where a guy went through drive through and he ordered, the car drove up to the window, he got his food and the car did not leave until the cashier handed him his card back. I wonder how it knew

More Plastic 🎉

yeah, they make decisions to maximize profit. Other companies HAVE to refresh more often because they have so much trouble selling cars in what is an otherwise very competitive market.

> They don't refresh if it's not broken I remember when Tesla's entire plan was to sell 20m vehicles a year and that they would have them in a series of form factors from vans, semis, buses, sportscar, compacts etc. It is far more of an issue than simply a refresh. The only new vehicle they have launched in six years now is the unmitigated disaster that is the cybertruck. Meanwhile, BYD, which has its own problems, has vehicles in every category you could think of. Tesla had a first mover advantage and blew it, then Musk destroyed the brand to really ensure it was doomed

they are launching cybercab >has vehicles in every category you could think of. Tesla had a first mover advantage and blew it, then Musk destroyed the brand to really ensure it was doomed Because they don't make money. Tesla can only make money if they have self driving. Self driving comes first and then the vehicles will sell themselves Because you will then be able to buy vehicles in the form factors you need that can self drive

They removed the glass roof, lane assist, 2nd row screen etc.

My thoughts too. They let slip in the EC that the new model was a de-contented MY, but man this effort was really low-energy. They removed the side button controls on the seats! GMAFB

Yes that's the latest plan. So what will master plan 5 or 6 be when FSD turns out to be as successful as 20 Million cars?

[–]Visual-Advantage-834 1 point just now I like the fact they are keeping the glass roof as apparently its cheaper to manufacture and assemble - and then add the roof liner to seal it off. So when the roof glass gets cracked you have to strip out the entire liner to replace? Elon genius!

> cut World Aid funding He led and celebrated the deletion of USAID, the world's largest humanitarian aid agency, that primarily existed to provide essential food and medicines to the very poorest people on earth. It's unexpected immediate stop has already cost thousands of lives and is projected to cause preventable deaths up to 14m. It is hard to find another singular decision that has ever cost that many lives. The worlds richest man destroying aid for the literal poorest people on earth is beyond comic book super villain territory.

Nah its fine because sometimes he says the word qasi before the infinite bit. Totally reasonable

> they are launching cybercab Sure, bud. Is that before or after the semi and the roadster? That design is an abomination. We've had purpose built taxis for decades. They have easy access, great visibility, adaptable seating, adaptations for disabled people, convenient luggage storage etc. Like the Cybertruck, the cybercab is a billionairres idea of what a taxi should be, and it is dumb as fuck. > Because they don't make money. Because they fucked up. Plenty of vehicle manufacturing companies make money. > Because you will then be able to buy vehicles in the form factors you need that can self drive They can't get it to work on the cybertruck, there are no set standards to make it easily available to other companies, they've been trying to partner with other companies for years with no takers, and I severely doubt anyone will touch it whilst it is drowned in government and civil court cases that include multiple deaths.

“Tesla will use less premium materials to produce the new vehicles” Holy shit. I guess cardboard and cardboard derivatives are back on the menu.

This has to be their dumbest release since the CT. Why not actually come up with a new model and keep it around 30k. That would actually sell. Anyone who buys this for 5k less than the normal version is nuts.

Day two of class - debt. 70-80% of new cars are on some sort of monthly payment finance product. I.e. you don't need the cash sat in the bank. What is going to be more telling than this headline price for the stripped down Y is what the monthly finance price is. My guess is it will be horrendous because the residuals of these are going to be awful compared to the old standard car.

How to go from a 10 year lead to 5 years behind...

Hahaha, You got any data to back that up?

The Slate should be out next year. If I was inclined toward buying an EV, I think that would be a much better option even though Tesla's quality disqualifies them immediately.

Tesla as a brand is a cult, just like Apple. That's what they rely on so they can get away with giving customers less while charging more. Unlike Tesla though, Apple isn't out doing things to scare away their cult followers.

Can get much cheaper, they are already junk.