Tesla unveils slightly cheaper versions of the Model 3 and Model Y. How do they compare?

Tesla rolled out new, slightly cheaper versions of two of its electric car models on Tuesday. Here is what to know about the updates.

The new Model Y SUV, has a stripped-down interior and its price starts at $39,990. It is only slightly cheaper than the original, which starts at $41,630.

How do they compare to the original?

Meanwhile, the Model 3 Sedan will start at $36,990, which is a fraction cheaper than the original $44,130.

The new versions will have fewer features than the earlier version and they will not have Autopilot, the company’s basic advanced driver assistance system. Instead, they come with Autosteer, its traffic-aware cruise control.

Tesla said the new "Standard" versions have an estimated 321 miles (515 kilometres) of range on a full battery.

Compared to previous models, the new Model Y comes with a shorter 321-mile driving range, fewer audio speakers and a fabric interior, not microsuede. The model also lacks a panoramic glass roof and a touchscreen in the second row.

This model faces stiff competition in the $40,000 range for EVs from vehicles including Ford’s Mustang Mach-E, Chevrolet’s Equinox EV and Hyundai’s Ioniq 5.

The new Model 3 has also cut down on the driving range, ambient lighting and other features.

Appeasing investors

Tesla has talked about a cheaper car to appeal to more cost-conscious consumers for years, though the two new “standard” models are priced well above the $25,000 price tag promised.

The announcements come in a brutal year for Tesla as it tries to attract more customers despite an ageing lineup, stiff competition from foreign EV makers and anti-Elon Musk boycotts targeting the company.

The reaction from the stock market after the news broke suggests the new models are not expected to help much.

“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”.