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Industry analysts debate whether these stripped-down models will cannibalize Tesla’s higher-margin trims or help expand the overall market share. Some believe that offering more affordable variants will entice new customers and increase Tesla’s total addressable market, especially by making EVs accessible to a broader demographic.
Others, like investor Gary Black, argue that these cheaper models could erode profits on premium variants. Yet, many agree that a broader vehicle lineup, particularly more affordable options, strengthens Tesla's competitive position, especially as legacy automakers accelerate EV development.