After more than a year of teasing “more affordable models,” Tesla has finally unveiled new, lower-priced versions of its popular Model 3 and Model Y vehicles. The new “Standard” variants start at $36,990 for the Model 3 and $39,990 for the Model Y.
Each model offers an estimated 321 miles of range on a full charge but comes with noticeably fewer features compared to Tesla’s premium options. The most striking omission is Autopilot, the company’s basic driver-assistance suite, which has been replaced with simple traffic-aware cruise control.
The pared-down approach extends beyond software. Inside, the cars come with manual steering wheel and mirror adjustments, no rear touchscreen, no FM/AM radio, and just seven speakers instead of the 15 found in higher trims. Only the front seats are heated, and the glass roof featured in other versions has been replaced with a standard top.
Tesla says the move aims to reignite growth after sales declines in 2024, but the prices still fall short of the long-promised $25,000 Tesla that CEO Elon Musk once hinted at. Even the new Model 3 doesn’t reach the legendary $35,000 mark that Tesla initially marketed before quietly phasing it out years ago.
On the exterior, the changes are subtle but noticeable, including the removal of the light bar on the Model Y’s front and other premium design elements. Musk has previously likened Tesla’s cost-cutting efforts to playing “Game of Thrones but for pennies,” and this release appears to embody that philosophy.
The new Standard models will be available in multiple global markets, including Europe. With the expiration of the U.S. federal EV tax credit, the pricing structure will be straightforward unless local incentives apply.
Tesla’s move comes as competitors like Ford, General Motors, and Rivian prepare their own affordable EV platforms, potentially reshaping the electric vehicle market once again.
While the cheaper models could boost Tesla’s numbers, they also risk cannibalizing sales of its pricier cars, and could further shake up the used EV market.
