Tesla has recently unveiled a new lineup of more affordable electric vehicles (EVs) by introducing stripped-down versions of its refreshed Model Y and Model 3 cars. These pared-back models are designed to lower the entry price, making Tesla ownership accessible to a broader range of consumers. This strategic shift is a significant development in Tesla’s product offering, aligning with an increasing demand for budget-friendly electric cars without compromising the core Tesla experience.
For many observers and drivers familiar with Tesla’s vehicles, this move feels overdue but welcome. By removing some of the premium features and extras that many owners seldom use, Tesla aims to offer the same fundamental design, driving performance, and software sophistication at a lower cost. This approach promises to expand the company’s reach to more first-time EV buyers who may have previously been deterred by the higher price tags associated with Tesla’s premium trims.
The timing of these launches is particularly relevant given the current state of the vehicle market. According to data from Kelley Blue Book in June, the average transaction price for a new vehicle in the United States is approximately $49,077, while the average for electric vehicles stands at $57,245. Although this figure is down from a market peak in late 2023, it remains roughly $10,500 higher than prices from five years ago. Within this context, Tesla’s new lower-cost models could provide a welcome option for buyers looking to enter the EV market without stretching their budget.
Starting with the Model Y Standard Rear-Wheel Drive, this version is priced at $39,990. It offers an EPA-estimated driving range of 321 miles, which is competitive for vehicles in this segment. Performance-wise, it accelerates from 0 to 60 mph in 6.8 seconds and supports a peak charging rate of 225 kW. The vehicle is powered by a 69 kWh battery pack and produces around 300 horsepower. A notable technical difference from higher trims is that this model uses one fewer battery module, which contributes to a 5% improvement in efficiency compared to the regular Model Y Rear-Wheel Drive.
Inside, the Model Y Standard features a minimalist design that Tesla enthusiasts will recognize. The center console is open-concept, reminiscent of the design first introduced in the Cybertruck, and the door and dashboard trims use textile materials rather than more expensive finishes. The seats offer 10-way adjustments for the driver and 4-way for the passenger, but these are controlled via the touchscreen interface rather than physical buttons, simplifying the cabin layout. While the front seats are heated, the rear seats do not have heating functionality, and most seat, steering, and mirror adjustments are manual.
Tesla has included a seven-speaker audio system and automatic high beams as part of the package. The interior uses a dual-tone combination of textile and vegan leather materials, maintaining a modern but cost-conscious aesthetic. Some premium features have been removed, such as the rear passenger screen, but the car still comes with a mobile charger. Instead of a fully glass panoramic roof, the Model Y Standard’s roof is internally closed with a fabric headliner, which improves insulation and reduces cabin noise. Additional cost-saving measures include manually folding side mirrors and the omission of the HEPA air filter, replaced by a more basic particulate and odor filter.
The Model Y Standard rides on 18-inch wheels as standard, with an option to upgrade to 19-inch wheels. It offers 75 cubic feet of cargo space and a towing capacity of 3,500 pounds. The vehicle’s curb weight is 4,061 pounds. Like other Teslas, it benefits from access to the company’s extensive Supercharging network, capable of adding up to 160 miles of range in about 15 minutes. Buyers can choose from three color options: stealth gray, pearl multicoat white, and diamond black.
Turning to the Model 3 Standard Rear-Wheel Drive, this more affordable variant starts at $36,990. It shares many components with the Model Y Standard, including the same 69 kWh battery and estimated EPA range of 321 miles. Performance is slightly quicker, with a 0-60 mph time of 5.8 seconds and a power output of 286 horsepower. Notably, this model has been updated with a front bumper camera equipped with a washer system, a feature borrowed from the Model Y.
The interior of the Model 3 Standard uses vegan leather and textile materials for the seats, and similar to the Model Y,