Tesla has introduced more affordable Standard versions of its Model 3 sedan and Model Y SUV, priced at $36,990 and $39,990 respectively, as part of a strategy to boost sales after setbacks in 2024. These editions offer around 321 miles of range with a rear-wheel-drive configuration and a smaller battery pack, resulting in slightly slower acceleration and capped top speeds.
Significant cost reductions come from simplified features: interiors use part-cloth seats instead of full leather, lack a second-row touchscreen, and rely on manual adjustments for steering wheel and mirrors.
Audio systems are pared down to seven speakers, heated seats are only in the front row, and FM/AM radio is removed. Externally, the front light bar and panoramic glass roofs are omitted from the Standard models.
Notably, full Autopilot capabilities are absent, with only traffic-aware cruise control included, reflecting Tesla’s focused effort on cutting expenses, as Elon Musk described as a “Game of Thrones but for pennies” challenge.
These models will be offered globally, including Europe, where their efficient range is competitive. In the U.S., prices no longer benefit from the expired federal EV tax credit, making local incentives crucial for buyers.
Tesla’s pricing places it ahead of some rivals, even as companies like Ford and General Motors prepare to launch budget EVs in coming years. Despite challenges related to Musk’s politics earlier this year, Tesla posted record quarterly results, with these Standard trims expected to help sustain momentum and pressure competitors in new and used EV markets alike.