!["Investors were looking for something truly different, not an iteration of [an] old product."](https://www.thecooldown.com/wp-content/uploads/2025/10/Depositphotos_210743490_L.jpg?w=1920&h=800)
Tesla announced a couple of changes to its lineup in an apparent bid to stimulate buyer demand, the Associated Press reports, but the market was underwhelmed by the news.
For years, the brand appeared to have the electric vehicle sales sector locked down, an indomitable force with few, if any, substantive competitors.
However, in 2025, a chaotic storm of challenges from affordable new EV brands, economic headwinds, several high-profile unforced errors involving CEO Elon Musk, and the loss of federal EV subsidies combined to create a largely sustained sales slump worldwide.
Tesla did say it had its best quarter of all time in the recently closed Q3, from July through September, on the heels of the Sept. 30 expiring $7,500 federal tax credit many of its vehicles qualified for, but 2025 has still been a down year for the company overall.
In May, prominent Tesla cheerleader Dan Ives of Wedbush Securities speculated that "some of the damage" caused by Musk's political involvement permanently damaged the brand in the U.S. and Europe. Another analyst described the situation as "100% irreversible."
Tesla's last few quarters have been marked by uncertainty, with Musk saying in July there may be "a few rough quarters" ahead, and in recent months, the brand's board has twice signaled its faith in Musk in the form of massive compensation packages framed as a means to focus his attention.
According to the Associated Press, Tesla's share price ticked up 5% on Monday, Oct. 6, in anticipation of the next day's announcement.
On Tuesday, Tesla unveiled two changes to its roster, both involving stripped-down versions of existing models with a price cut of around $5,000, likely to offset the loss of the tax credits. The new Model Y Standard has fewer features and a slightly smaller range than the original, now known as the Model Y Premium.
In addition, Tesla's Model 3 received the same treatment; both new models "have cloth interiors, fewer speakers and less soundproofing," per the New York Times. The outlet cited "feverish speculation" among Tesla fans on social media, many of whom anticipated an all-new model.
Edmunds.com assessed the Model Y Standard and decreed it was "a little too bare bones" for the price, advising users that the 2026 Hyundai Ioniq 5 SEL RWD was a far better buy. That opinion was echoed by Edmunds analyst Ivan Drury after Tesla's announcement.
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"Investors were looking for something truly different, not an iteration of [an] old product," he observed, as Tesla's share price plummeted before the closing bell rang on Tuesday.
"I can't imagine this will bring [sales] levels back to what they want," Drury added.
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