Tesla trims Model Y and Model 3 prices, keeps 516 km range
Tesla launches cheaper Model Y and Model 3, keeps 516 km range
Tesla trims Model Y and Model 3 prices, keeps 516 km range
Tesla launches cheaper Model Y and Model 3 with stripped interiors and smaller batteries, keeping a 516 km range as margins strain amid China competition.
2025-10-21T15:34:06+03:00
2025-10-21T15:34:06+03:00
2025-10-21T15:34:06+03:00
Tesla has rolled out lower-cost versions of the Model Y and Model 3, cutting the price by roughly $5,000. The company trimmed features, downsized the battery, and fitted a less powerful motor in a bid to rekindle growth amid intensifying competition, particularly from China. Analysts reckon the move will lift volumes, but doubt it will rescue thinning margins: after a string of price wars, Tesla is already losing profit on each vehicle, and sales of regulatory credits—once a key revenue source—are close to tapped out.The savings come from a pared-back interior and reduced equipment: seat ventilation, ambient lighting, seat-mounted buttons, and even some basic elements are gone. Yet Tesla kept the driving range at 516 km—a pragmatic choice in a market where concerns about limited range still linger. The cabin now reads more austere, but the range figure targets the fear that most often stalls purchase decisions.The rub is elsewhere: even the so-called cheaper versions still strike many buyers as pricey, especially against Chinese EVs. Investors are looking to Tesla’s upcoming report for more than unit counts; they want evidence the company can preserve profitability while Elon Musk places his bet on robotaxis and new projects. That tension—chasing scale while defending earnings—will define the next stretch.
Tesla, Model Y, Model 3, price cut, cheaper versions, lower-cost EVs, reduced features, smaller battery, less powerful motor, 516 km range, China competition, EV market, margins, profitability
2025
Michael Powers
news
Tesla launches cheaper Model Y and Model 3, keeps 516 km range
Tesla launches cheaper Model Y and Model 3 with stripped interiors and smaller batteries, keeping a 516 km range as margins strain amid China competition.
Michael Powers, Editor
Tesla has rolled out lower-cost versions of the Model Y and Model 3, cutting the price by roughly $5,000. The company trimmed features, downsized the battery, and fitted a less powerful motor in a bid to rekindle growth amid intensifying competition, particularly from China. Analysts reckon the move will lift volumes, but doubt it will rescue thinning margins: after a string of price wars, Tesla is already losing profit on each vehicle, and sales of regulatory credits—once a key revenue source—are close to tapped out.
The savings come from a pared-back interior and reduced equipment: seat ventilation, ambient lighting, seat-mounted buttons, and even some basic elements are gone. Yet Tesla kept the driving range at 516 km—a pragmatic choice in a market where concerns about limited range still linger. The cabin now reads more austere, but the range figure targets the fear that most often stalls purchase decisions.
The rub is elsewhere: even the so-called cheaper versions still strike many buyers as pricey, especially against Chinese EVs. Investors are looking to Tesla’s upcoming report for more than unit counts; they want evidence the company can preserve profitability while Elon Musk places his bet on robotaxis and new projects. That tension—chasing scale while defending earnings—will define the next stretch.
