Part 5/10:
Unfortunately, the reality has fallen short of expectations. Instead of a dedicated “low-cost” model priced around $25,000, Tesla released a stripped-down version of the Model Y, which, paradoxically, ended up costing more than previous options once credits are removed. This move was more a modest refresh than the revolutionary vehicle many anticipated.
The broader impact is that Tesla hasn't managed to successfully penetrate the budget-conscious market segment as hoped. Competitors already have established low-cost EVs, and Tesla’s offerings aren’t competitive in terms of price or value at this point. Therefore, the “move downmarket” strategy has not materialized as a significant growth driver.