Tesla has unveiled a new, more affordable version of its Model Y, named the “Standard,” alongside a similarly priced Model 3 Standard. Both models are now available for order on Tesla’s U.S. website, aiming to attract a broader customer base amid fluctuating sales.
The Model Y Standard, equipped with rear-wheel drive, starts at $39,990 and boasts an estimated range of 321 miles with its standard 18-inch wheels. In comparison, the Model 3 Standard is priced lower at $36,990, while maintaining the same impressive range. Deliveries for the Model Y Standard are expected between November and December, while customers can anticipate their Model 3 Standard vehicles arriving between December and January.
Visually, the Standard trims have made some notable omissions. They lack the distinctive front and rear light bars seen in their more expensive counterparts and are offered in a limited palette of three colors: Stealth Grey, white, and Diamond Black. Inside, consumers will find only a black interior option, streamlining the customization process.
Both models come equipped with a 15.4-inch infotainment screen, similar to higher-priced options, but there are several key features missing. The Standard versions do not include a second-row screen, ambient lighting, or AM/FM radio tuners. The seating features cheaper cloth inserts surrounding vegan leather, and the vehicles can only perform “traffic aware cruise control,” Tesla’s lower-tier adaptive cruise control system. More sophisticated features, such as “autosteer,” Autopilot, and Full-Self Driving capabilities are not available in these new trims.
Analysts speculate that Tesla may have reduced costs associated with batteries and electric motors in order to offer these cheaper vehicles. The release comes on the heels of the expiration of the federal EV tax credit in the U.S. on September 30, a move that CEO Elon Musk hinted at during the company’s second quarter earnings call.
Tesla plans to ramp up production of these Standard models, with the first builds having begun in June and volume production expected in the latter half of 2025. The introduction of these more accessible models comes as a strategic effort to offset recent dips in sales, although there was a marked increase in Q3 sales as consumers rushed to purchase electric vehicles ahead of the tax credit expiration.
In a related note, Tesla’s stock experienced a brief surge of over 5% following the cryptic promotion of the new models, featuring a spinning company logo and hints of the upcoming releases. However, shares subsequently retracted nearly 4% on the following trading day after the website updates.
This strategic move is expected to bolster Tesla’s sales numbers as they continue to adapt to evolving market conditions and consumer demands in the electric vehicle space.
