NEW YORK CITY, New York: Tesla unveiled cheaper versions of its Model Y and Model 3 electric vehicles this week, aiming to lure back buyers and revive sliding sales in a challenging year, but investors were not convinced, sending the company’s stock sharply lower.

The new Model Y, priced just under US$40,000 with a simplified interior, marks Tesla’s latest attempt to attract more budget-conscious customers amid rising competition from global EV makers, an aging product lineup, and boycotts linked to CEO Elon Musk.

Despite the announcement, Tesla shares fell 4.5 percent to $443.09 on October 7, erasing gains from the previous day when anticipation of new models had lifted the stock more than five percent.

“Investors were looking for something truly different, not an iteration of an old product,” said Ivan Drury, an analyst at Edmunds. “I can’t imagine this will bring levels back to what they want.”

Tesla also introduced a new Model 3 version priced below $37,000. In New York, where buyers can apply a state rebate, the effective cost drops below $35,000.

The two “standard” models are Tesla’s closest step yet toward the long-promised $25,000 electric car, which the company has discussed for years but has yet to deliver. Both new variants come at a time when many U.S. customers are delaying EV purchases following the expiration of the $7,500 federal tax credit.

The lower-priced Model Y offers a 321-mile driving range, fewer audio speakers, and a fabric interior instead of microsuede. It also drops the panoramic glass roof and the second-row touchscreen found in higher-end trims.

The Model 3 cuts back on range, ambient lighting, and other premium features.