Tesla has unveiled lower-priced versions of its Model Y and Model 3 electric vehicles in an effort to boost slowing sales, but the move failed to impress investors, sending its stock down on Tuesday.

The new Model Y, priced just under $40,000, features a simplified interior and reduced specifications. The release comes during a challenging year for the company, which faces a maturing product lineup, growing competition from foreign EV makers, and boycotts linked to CEO Elon Musk.

Market analysts said the new versions are unlikely to provide the spark investors were hoping for. “Investors were looking for something truly different, not an iteration of an old product,” said Edmunds analyst Ivan Drury, as Tesla shares dropped sharply near the close of trading.

Tesla also introduced a cheaper Model 3 starting below $37,000, which falls under $35,000 in New York after state rebates. However, both models remain above the $25,000 price point Tesla once promised for a mass-market vehicle.

The rollout coincides with declining EV demand in the U.S. following the expiration of a $7,500 federal tax credit, prompting many customers to delay purchases.

Tesla stock slid 4.5% to $443.09 on Tuesday, erasing gains from the previous day when anticipation of the new models had pushed shares up over 5%.

The new Model Y offers a shorter 321-mile range, fewer speakers, and a fabric interior instead of microsuede. It also lacks features like a panoramic glass roof and rear touchscreen, placing it in competition with EVs such as Ford’s Mustang Mach-E, Chevrolet’s Equinox EV, and Hyundai’s Ioniq 5.

Similarly, the new Model 3 reduces driving range, ambient lighting, and other premium features.