In an effort to curb the fall in sales and protect its market share against more intense global competition, Tesla Inc. unveiled on Tuesday new, more affordable versions of its best-selling models: the Model Y SUV and the Model 3 sedan, priced at $39,990 and $36,990 respectively.

Both "Standard" versions offer a range of 321 miles and a more moderate acceleration than the current variants. Delivery dates on the Gate website start in December 2025 and extend to January 2026.

These more economical options do not include premium features such as leather interiors, rear touchscreen, Autosteer, and the Model Y's LED light bar.

Tesla's shares experienced a fall of 4% on Tuesday, following a rise of 5% the day before, due to rumors about a new product announcement. This launch comes after the expiration of the federal tax credit of $7,500 for electric vehicles, which effectively raised car prices in the United States and slowed sales.

Elon Musk, the CEO, has repeatedly emphasized the importance of affordability. In July, he stated that although demand remains high, "people simply do not have enough money in their bank account to buy."

The introduction of these new variants comes as Tesla faces a decline in deliveries over several quarters and increasing competition from manufacturers like Volkswagen and BYD. Its latest launch, the Cybertruck at the end of 2023, has encountered difficulties due to market withdrawals and lower-than-expected demand.

Tesla has been directing investors' attention towards robotics and artificial intelligence with its humanoid robot Optimus and the Full Self-Driving autonomous driving software.

However, Musk's political views and a line of aging products have affected brand loyalty, particularly in China and Europe, keeping investors in a cautious position.