Tesla has rolled out a cheaper version of its two most popular electric cars - the Model Y and Model 3 - in a bid to revive flagging sales.
A stripped-back 'Standard' trim has been debuted in the US overnight. These limit the specification of the cars to lower the price of the Y SUV by $5,000 and the 3 saloon by $5,500.
The Y Standard is priced at $39,990 - some $5,000 cheaper than the rest of the range - while the 3 Standard costs $36,990, which is $5,500 less than the next most affordable variant of the compact exec saloon.
It comes following years of promises from Elon Musk to debut a cheaper car to appeal to more cost-conscious customers.
But as the US car firm hopes the cheaper options will help it push on in what has been a brutal year for sales - which has seen it lose customers due to its ageing vehicle line-up, increased competition from China, and anti-Musk boycotts - investors dumped its stock on Tuesday following the announcement.
Tesla has promised that the Standard versions of both cars will be the 'most efficient ever', both offering up to 321 miles on the US's stricter EPA fuel economy cycle, which is likely to translate to a range in the region of 350 miles in the more lenient European WLTP test.
However, there's no confirmation regarding whether they will be offered to UK drivers at all...
The Model Y Standard gets a smaller - though size is undisclosed - battery and bodywork tweaks to become the most economical Tesla SUV yet.
These aero changes include new bumper designs, reworked 18-inch wheels, and reverting to traditional separate headlight clusters rather than the flashier lightbar introduced on the latest Model Y update.
While it might be the longest-range Model Y yet, it's also the slowest.
The 0 to 62mph time is 6.8 seconds, which is over a second longer than the Long Range RWD version, and more than twice as long as it takes the flagship Model Y Performance (3.3 secs).
Inside, the cars - even by Tesla's typically sparse cabin standards - look more minimalist than ever.
There is a large storage space between the two front seats, which are now clothed in 'soft-touch, durable textile' material.
And the US firm hasn't deleted every feature in an effort to cut prices; the Model Y Standard comes with Autopilot as well as the hardware for Full Self-Driving, depending on legal restrictions by region.
Yet for the UK, where FSD is still strictly prohibited, this won't be an issue for now, with Tesla refusing to state whether the Standard trim will be sold in Britain.
The reaction from the stock market after the news broke suggests the new models are unlikely to dramatically turnaround Tesla's fortunes.
'Investors were looking for something truly different, not an iteration of a old product,' said Edmunds analyst Ivan Drury, speaking as Tesla stock dropped sharply in the last minutes of trading.
'I can´t imagine this will bring levels back to what they want.'
Tesla stock fell 4.5 per cent to $443.09 on Tuesday after closing the day before up more than 5 per cent on anticipation of the new model announcement.
Model Y and Model 3 updates for the UK
While there is still no clarification regarding whether Tesla will launch the Standard variants of its two volume-selling cars in Britain, drivers in the UK are due to see improvements via a new update.
Owners of the Model 3 and Model Y will receive functional upgrades to cameras and battery packs to provide longer distances between charges.
The boost in range across the models vary from five to 30 miles, with the Model 3 Long Range Rear-Wheel Drive getting the largest mileage increase.
All variants of the Model 3 will be benefit from upgraded battery packs with higher-density cells which deliver more energy.
Tesla says that combined with segment-leading efficiency this will 'result in even greater real-world range for owners'.
The Model 3 Long Range Rear-Wheel Drive now offers a whopping 'official' quote range of 466 miles (with 18-inch wheels), up from 436 previously. That's enough to make it from London to Edinburgh on a single charge and to put it among the 10 EVs sold in Britain with the longest ranges.
The Rear-Wheel Drive version now claims to deliver 323 miles on a single charge up from 318 miles previously (five-mile increase), the aforementioned Long Range RWD's new range of 466 miles is an increase of 30 miles, and the Long Range All-Wheel Drive now offers 445 miles up from 421 miles (an increase of 24 miles).
On the high end of the Model 3 spectrum, the Model 3 Performance now provides 355 miles between charges thanks to the upgrade, up from 328 miles previously.
The Model Y Long Range All-Wheel Drive now offers 390 miles on 19-inch wheels or 372 miles on 20-inch rims, up from 364 miles and 353 miles respectively.
Other Model 3 upgrades include a new Front Facing Camera, located in the front bumper which offers drivers an expanded view of the surroundings on the centre screen.
The camera is also equipped with a fluid washer and integrated heating to prevent fogging and to keep it clean in all weather conditions.
Elon Musk's electric car brand has also brought back a common feature which caused huge commotion among customers when it was removed from the Model 3: the humble indicator stalk.
In 2023, Tesla removed steering wheel stalks, replacing them with steering wheel buttons as part of the 'Highland' update of the Model 3.
The move attracted significant criticism from drivers and road safety groups, triggering Tesla to reintroduce a single stalk to the Model 3 earlier this year - but only in a retrofit kit for selected Chinese cars at an extra cost of £270.
New Model 3s will match the Y with a singular stalk for indicating.
Tesla's also offering a retro-fit option for customers who purchased without a stalk.
Tesla says that these upgrades can be access today via Tesla's online Design Studio.
Crucially, pricing on all models will remain unchanged: The Model 3 starts at £39,990 and the Model Y starts at £44,990.
The new Performance version tops the range at £61,990.
