Tesla (NASDAQ: TSLA) is finally offering more affordable versions of the Model Y crossover and Model 3 sedan, priced below $40,000 before shipping. This move comes after years of waiting for a lower-cost model, with the Model 3 originally sold for around $50,000 back in 2017. Despite the lower price tags, some features have been removed in the standard models, such as ventilated seats and rear heated seats. The battery pack is about 10% smaller, but still offers a driving range over 300 miles. However, the lack of a lease option and potential cannibalization of premium models may impact sales and margins in the near term.

Investors are cautiously optimistic about Tesla’s new more affordable models, the Model Y crossover and Model 3 sedan. The base Model Y starts at $39,990, while the Model 3 starts at $36,990, both before shipping. Although the prices are lower, some features have been removed, and financing for the new models comes with a higher APR compared to the premium versions. There are concerns that the new standard models may cannibalize sales of premium options, potentially affecting margins. While the move opens up Tesla to a wider consumer base, the long-term impact on sales and demand remains uncertain.

Read more at Nasdaq, Inc.: Finally, Good News for Tesla Investors — or Is It?