Tesla has unveiled cheaper models of two of its most popular cars in the US as it tries to boost sales on the heels of the expiration of a key US tax credit.
But the carmaker’s shares tumbled about 4% as investors were underwhelmed by the announcement. In the US, the new versions of its Model Y mid-sized sport utility vehicle and Model 3 sedan are priced only $5,000 less than previous versions.
Tesla, which faces growing competition, has lost ground as it has been slow to offer new, more affordable vehicles, despite its release of a new Model Y version this year.
Tesla isn’t even #4 on full self driving. When Ford pulled out of the game, they were way ahead of Tesla, but they deemed the investment wouldn’t begin to see payback in a decade. Probably because they realized the risks that are only now catching up to Tesla, in the form of trials about product responsibility for FSD and Autopilot.
Makers that are clearly ahead of Tesla are Waymo, GM (Cruise subsidiary), Mercedes.
Although Cruise subsidiary of GM was shot down due to incidents, GM decided a couple of months ago to renew the program for private cars.