Tesla adds a cheaper variant of the Model 3 and Model Y with reduced acceleration and a smaller battery that will be offered at USD 5,000 less than its current starting price. The markets were not too thrilled about this announcement and some of Tesla’s long time investors feel it won’t be cheap enough to compete with its European and Chinese counterparts.

Source: Reuters – https://www.aljazeera.com/economy/2025/10/7/tesla-unveils-new-lower-cost-model-y-amid-rising-competition