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flag Tesla lowers Model 3 and Y prices by $5,000 with smaller batteries and fewer features, but sales response is weak.

flag Tesla has launched more affordable Model 3 and Model Y trims, lowering prices by about $5,000 through reduced battery size, smaller wheels, less powerful motors, and removal of premium features like ventilated seats and rear screens. flag The base Model Y starts at $39,990 and the Model 3 at $38,630 with shipping. flag Despite the lower prices, the response has been lukewarm, with critics noting a less dynamic driving experience and concerns that the cuts may harm Tesla’s luxury image and cannibalize higher-trim sales. flag The move contrasts with CEO Elon Musk’s 2023 claim that reducing car quality is an easy way to cut costs, drawing skepticism about Tesla’s long-term strategy.

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