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Tesla enthusiasts—particularly longtime Model Y owners—may find the strategic shift underwhelming or even boring, especially since the upcoming affordable model may look similar to existing models with lower specifications inside. This could engender disappointment among core fans, who crave innovation and excitement.
However, the big market lies with ordinary consumers who prioritize affordability and practicality over flashy features. For these buyers, a simple, cost-effective Tesla is far more appealing than the latest high-end, feature-rich model. This differentiation explains Tesla’s focus on expanding into the middle-income demographic, which constitutes a vastly larger market segment than its current high-end clientele.