NEW YORK (AP) — Tesla announced the rollout of a new, cheaper version of its best-selling electric car on Tuesday in hopes the offering will help revive flagging sales.
The new Model Y, costing just under $40,000 with a stripped-down interior, follows a slump in Tesla sales covering most of the past year due to anti-Elon Musk boycotts targeting the company.
Tesla stock was down 1% to $448.32 in afternoon trading Tuesday. It had closed Monday up more than 5% after Tesla had teased fans with cryptic postings on social media about an imminent product announcement.
The stock is near all-time highs even though both sales and profits have plunged in recent quarters.
Compared to previous models, the new version comes with a shorter 321-mile driving range, fewer audio speakers and a fabric interior, not microsuede. The new model also lacks a panoramic glass roof and a touchscreen in the second row.
The new offering faces stiff competition in the $40,000 range for EVs from vehicles including Ford’s Mustang Mach-E, Chevrolet’s Equinox EQ and Hyundai’s Ioniq 5.