Tesla introduces budget Model Y Standard with key compromises

Tesla has launched a more affordable Standard version of its Model Y crossover, priced at $39,990 in the US and €40,970 in Europe. This trim cuts $5,000 or €9,000 off the Premium Rear-Wheel Drive model but sacrifices several features. The changes aim to broaden accessibility amid rising EV competition.

On October 25, 2025, ArenaEV reported that Tesla introduced Standard versions of its Model 3 and Model Y to make electric vehicles more accessible. The 2026 Model Y Standard, likely the more popular option, starts at a lower price point but includes notable downgrades.

Performance sees a reduction, with acceleration from 0-100 km/h extending to 7.2 seconds compared to 5.6 seconds on the Premium Rear-Wheel Drive. Exact power figures are not quoted by Tesla. The battery capacity drops to 69 kWh from 78.1 kWh, resulting in a range of 321 miles versus 357 miles. Charging speed is capped at 175 kW, down from 250 kW, though real-world differences may be minimal: the Standard adds 260 km (48% of range) in 15 minutes, while the Premium gains 266 km (44%).

Exterior changes include 18-inch steel wheels with plastic covers instead of 19-inch aluminum ones, and simplified lighting without front and rear LED light bars or adaptive high-beam in the single-unit headlights. The suspension uses a basic passive system, lacking advanced shocks for comfort.

Inside, driver aids omit Autosteer, despite the hardware being present; accessing it requires the $8,000 Full Self-Driving package. Side mirrors fold manually without auto-dimming. The audio system reduces to seven speakers from 15 plus a subwoofer, and FM radio is absent. Seats feature dual-tone vegan leather and cloth upholstery, with only front seats heated and no ventilation; rear seats fold manually.

Rear passengers lose the 8-inch touchscreen and center armrest, limiting access to cupholders. The panoramic glass roof is covered by a fabric headliner, a cost-saving measure over a metal panel.

This bare-bones approach follows a failed similar strategy with the entry-level Cybertruck, which sold poorly after five months. Competitors like the Hyundai Ioniq 5 and Chevrolet Equinox offer more features at lower base prices, raising questions about the Standard's appeal as Tesla offsets expired federal tax credits.

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