Just one month after launching its more affordable Model 3 in Israel, Tesla has dropped the 'Standard' label, renaming it simply Rear Wheel Drive. The price stays at around NIS 192,000, unchanged from the initial offering. This adjustment comes amid broader challenges for the company in the electric vehicle market.
Tesla introduced the base version of its Model 3 in Israel last month as a more budget-friendly option, priced at NIS 191,600. To achieve this lower cost—about 15 percent less than higher trims—the model forgoes features such as electrically adjustable front seats, an 8-inch rear-seat screen, non-active shock absorbers, and a smaller battery. It also has seven speakers instead of more in premium variants but keeps the panoramic roof.
In a recent update on its Israeli website, Tesla removed the 'Standard' designation from this entry-level model, now listing it as Rear Wheel Drive. The upgraded version retains its name as Premium – Rear Wheel Drive to distinguish it. Such a quick name change is rare in the automotive sector, where naming decisions typically undergo extensive research for long-term use.
This development follows Tesla's global launch of similar standard models last year, including a base Model Y that has yet to reach Israel. The company made these cuts partly in response to competition from cheaper Chinese electric vehicles and the expiration of a $7,500 tax credit for EVs in the United States. Despite these efforts, Tesla relinquished its position as the world's top EV maker in 2025 to BYD and saw sales drop in January 2026.
The base Rear Wheel Drive offers a driving range of 534 km and accelerates from 0 to 100 km/h in 6.2 seconds, compared to 750 km and 5.2 seconds for the Premium version, which costs NIS 34,000 more. Separately, Tesla announced last week it will cease production of the Model S and Model Y by year's end, though these have not been available in Israel recently.
The first deliveries of the renamed base Model 3 are scheduled for Israel this month, potentially boosting sales after the Model Y dominated the local market in prior years.
