Tesla Stock Rises. The Reviews Are in on Its New Cars—What Investors Should Care About.

Coming into Friday trading, Tesla stock was up about 8% so far this year and up about 82% over the past 12 months. (Getty Images)

Key Points

• Tesla introduced new “Standard” versions of the Model 3 and Model Y, priced at approximately $37,000 and $40,000 respectively.
• Edmunds noted the new Model Y lacks sporty reflexes but offers a comfortable ride, while the Model 3 maintains strong performance.
• Tesla stock was up 1.3% coming into Friday trading, and 82% over the past 12 months, with investors focusing on AI opportunities.

Tesla has new models to entice car buyers. Now car reviewers are driving them. The vehicles perform well, but ride quality isn’t the biggest question facing investors.

On Tuesday, Tesla unveiled “Standard” lower-priced versions of the Model 3 and Model Y, starting at about $37,000 and $40,000, respectively. The new vehicles have fewer features and a shorter per-charge range than most of the “Premium” versions of the cars. Automotive data provider Edmunds was given early access to the pair and took them for a spin.

“The new variant of the Model Y is the big surprise,” wrote Alistair Weaver, Edmunds editor in chief . It lacks “sporty reflexes” but is still a comfortable ride. “For only a $5,000 price difference, questions remain about whether the new Standard trim is a good value or just slightly cheaper.”

That’s the main issue for investors. Will a gap of a few thousand dollars be enough to increase the pool of Tesla buyers? Or will shoppers, already likely to buy a Tesla, trade down to save some money?

It’s too early to tell, but the new Model 3 and Y look like solid offerings that feel like traditional Teslas, said Edmunds.

“The new Standard Model 3 offers fewer compromises in driving quality than the new Model Y, maintaining strong performance and sporty handling,” added Weaver. “In contrast to the Model Y, the Standard version of the Model 3 retains more value with its price drop from the Premium trim.”

Investors, who expected the new models, appear fine with the vehicles. Coming into Friday trading, Tesla stock was up about 1.3%. The reaction to the new cars, overall, has been small.

Tesla reports third-quarter results on Oct. 22. Investors will want to hear about the new vehicles and order activity then.

Tesla stock was rising 0.4% in premarket trading at $437.22, while S&P 500 and Dow Jones Industrial Average futures were up 0.1%.

Coming into Friday trading, Tesla stock was up about 8% so far this year and 82% over the past 12 months. The gains have come despite falling car sales. Investors are more focused on Tesla’s AI opportunities, such as the robo-taxi business it launched in Austin, Texas, in June.

Write to Al Root at allen.root@dowjones.com