Tesla’s website revealed a standard Model Y SUV and Model 3 sedan, both priced under $40,000. Despite a 3% decrease in shares, these affordable versions are expected to drive deliveries post-US EV tax credit expiration. Morningstar maintains a $250 fair value estimate for Tesla, citing potential delivery growth in 2027 and beyond.

The new vehicles feature basic interiors and fewer electronics, appealing to cost-conscious consumers while still allowing Tesla to profit. However, current stock prices are considered significantly overvalued, trading 75% above fair value estimate. Market expectations for autonomous driving software and the robotaxi rollout continue to influence Tesla’s stock performance.

Read more at Morningstar: Shares Fall as Company Begins Taking Orders for Cheaper Model Y and Model 3 Vehicles