Updated Tue, Oct 7 2025 5:07 PM EDT debuted more affordable versions of its popular Model Y SUV and Model 3 sedan on Tuesday. The Model Y standard variant is priced just below $40,000, according to Tesla's website, and the Model 3 standard starts at around $37,000. The company also released a new version of its Full Self-Driving (Supervised) driver assistance system early Tuesday. The EV maker's stock closed 4.45% lower. Over the weekend, Elon Musk's electric vehicle company shared a teaser clip featuring a logo-emblazoned, spinning component that could be anything from a wheel cover to a fan or turbine. The clip ended with the numbers "10/7," indicating Tuesday's date for the reveal. Tesla posted a second clip to X on Sunday showing the outline of a vehicle's headlights in the dark. Shares climbed 5% Monday as the buzz grew online over what the announcement would be, but dipped about 3% on Tuesday. Many investors were hoping for updates on other new products such as the next-generation Roadster that Musk has promised for years. The standard variant of the Model Y doesn't feature a panoramic glass roof, leather seats or the light bars like the higher-end versions of the SUV. It costs about $5,000 less than the previous, entry-level version of the Model Y. The new Model Y standard features a battery that gets 321 miles of estimated range on a full charge, compared to the 357 miles of range in a Long Range version with rear wheel drive. The lower prices may help Tesla attract some buyers after the loss of $7,500 federal EV tax credits, which went away with President Donald Trump's spending bill. Tesla is still facing crushing competition across the globe, including in the U.S., from EV makers, some with lower-priced offerings. Earlier this year, Tesla had reportedly been working on a stripped-down version of the Model Y and was aiming for a price closer to $30,000. That was before President DonaldTrump's sweeping tariff announcements and the elimination of the tax credit. Read more CNBC tech news