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Elias Denny

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"Article text courtesy of nytimes.com"

Elon Musk’s electric car company said the new versions would start at around $37,000 and $40,000, prices that bring its cars closer to comparable gasoline vehicles. Tesla on Tuesday unveiled new versions of its two most popular models that will sell for around $5,000 less than previous versions.

The new Model Y will sell for $40,000 and Model 3 will cost $37,000. The cheaper versions are aimed at propping up sales after a federal tax credit for electric vehicle purchases expired at the end of September.

The company’s new models could be an early sign of how manufacturers will change their products and prices after President Trump and Republicans in Congress killed a program that had reduced the price of qualified electric vehicles by $7,500. Tesla sells more electric vehicles in the United States than any other company and sets the tone for the industry, though its market share has fallen below 50 percent.

An increasing number of electric vehicles are available for $35,000 to $40,000, making them less expensive upfront than luxury gasoline cars from BMW or Mercedes-Benz, though still more expensive than hybrid or gasoline vehicles from manufacturers like Toyota or Honda.