Tesla's announcement was made on Tuesday, October 7, 2025. The company unveiled more affordable versions of its popular Model Y SUV and Model 3 sedan, priced at $39,990 and $36,990 respectively. This launch aims to address declining sales and increased competition in the electric vehicle market by offering budget-friendly options. The announcement was highly anticipated following Tesla's teaser videos and record Q3 deliveries, and the event marked a strategic move by Tesla to revive its market momentum after the expiration of the $7,500 federal EV tax credit.
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