Tesla surprised everyone on Tuesday with the presentation of new versions of its two best-selling models—the Model Y SUV and the Model 3 sedan—this time in more affordable variants, as it attempts to rekindle consumer interest and strengthen its position in the electric vehicle sector.
Over the past two years, the price of the Model 3 has undergone a series of adjustments that reflect Tesla’s strategy to maintain its leadership in an increasingly competitive market. At the beginning of 2023, the sedan was selling for around $43,000, but after several reductions in 2024—motivated by slowing demand and pressure from manufacturers such as BYD and Volkswagen—the price dropped to around $39,000.
Declining prices and frustrated expectations
The new standard Model Y will be priced at just under $40,000, while the base Model 3 will start at $37,000, according to Tesla’s official website.
Tesla unveiled the new version 14 of its supervised autonomous driving system, an update that marks a notable technical leap forward from the previous version. The software incorporates advances derived from the robotaxi program and a more robust artificial intelligence model capable of processing much more information in real time. According to specialized reports, the system now better interprets the urban environment, reduces unnecessary alerts to the driver, and improves response in complex traffic maneuvers.
The market reaction was mixed: after a 5% rise on Monday, shares fell nearly 3% on Tuesday, disappointing investors who were hoping for news about the promised Roadster or robotaxis.
From futuristic vision to real challenges
Tesla has not launched a new model since the Cybertruck, released in late 2023, which has faced multiple voluntary recalls in the US. With sales declining for several quarters, Elon Musk is seeking to reposition the brand as a robotics and autonomous driving company. However, the aging catalog, competition from Volkswagen and BYD, and Musk’s own political controversies have eroded the brand’s perception.
While the entrepreneur promises autonomous taxis and humanoid robots, investors are watching cautiously. Even so, after losing 36% of their value in the first quarter, shares rebounded 40% in the third quarter, helped by Musk’s own purchase of $1 billion in shares.
The “broken” romance between Elon Musk and Donald Trump
Elon Musk’s close relationship with Donald Trump has taken its toll on Tesla, especially in Europe, where its public image has deteriorated. Some European consumers, sensitive to political and environmental issues, have rejected the brand because of the entrepreneur’s support for right-wing figures and his polarizing comments. This change in perception has been reflected in a sustained decline in sales in countries such as Germany and France, where local and Chinese competitors have seized the opportunity to gain market share in the electric vehicle market.
The recent reunion between Donald Trump and Elon Musk during the funeral of tycoon Charles Kirk drew attention for the friendly tone and apparent complicity between the two. Far from the tension that the media had portrayed months earlier, the two greeted each other with a smile and a prolonged handshake, exchanging brief but cordial words. The scene was interpreted by some as a simple gesture of courtesy, but for others it showed that the supposed rift between the two was never as real as they wanted us to believe.
Political and financial analysts suggest that this public distancing could have been part of a carefully designed strategy. With Musk facing global criticism for his support of Trump and Tesla losing ground in international markets, the entrepreneur may have sought to reduce the reputational cost without severing the ties he presumably still maintains with the White House, but out of the public eye.
Source: Yahoo!finanzas
