Tesla debuts cheaper versions of Model Y and Model 3 electric vehicles

Driving the news: Tesla immediately launched sales of Model Y Standard and Model 3 Standard — both with lower price tags and fewer features than the Premium variants.

• The Model Y Standard starts at $39,990, compared with the Model Y Premium at $44,990.
• The Model 3 Standard starts at $36,990, compared with the Model 3 Premium at $42,490.

The big picture: The move comes after the expiration of the $7,500 federal EV tax credit at the end of September.

• The demise of the tax credit serves as a de facto price hike for shoppers who would've otherwise qualified for it, incentivizing the automakers to provide cheaper versions of their vehicles.

The impact: Tesla shares — which had pared some of their earlier losses in afternoon trading — slipped again after the announcement.

• They were down 4.1% to $434.64 at 3:29pm ET.