Tesla introduced more affordable Standard versions of its Model 3 and Model Y this week, priced at $36,990 and $39,990 respectively, to stimulate demand following the expiration of the $7,500 federal EV tax credit. Analyst Dan Ives of Wedbush Securities sees this as a step toward 500,000 quarterly deliveries, potentially reaching 600,000 with future models like the Cybercab. The launches come amid mixed reactions on pricing and features, including a closed roof on the Model Y Standard.
Tesla unveiled the Standard Model 3 and Model Y on Tuesday, October 8, 2025, as a response to the end of the $7,500 EV tax credit in late September. These base trims aim to attract new buyers with prices under $40,000, offering features like Tesla's HW4 computer, 321 miles of EPA-estimated range for the Model Y Standard, a top speed of 125 mph, and 0-60 mph acceleration in 6.8 seconds. However, they omit premium elements such as ventilated rear seats, a second-row touchscreen, and manual-adjust seats and steering.
A key change in the Model Y Standard is the replacement of the panoramic glass roof with a closed textile headliner. Tesla Vice President of Engineering Lars Moravy explained that the roof still uses opaque glass underneath for 'cost, supply chain and manufacturing efficiency,' while addressing customer requests for a closed headliner to reduce road noise. He noted, 'All glass is NOT created equal. Remember, the Model Y Premium glass is laminated with silver IR reflective coatings to make it super comfy and reject solar load… the standard is not… plus LOTS of people wanted a closed headliner, always trying to listen (and improve road noise at the same time).'
Wedbush analyst Dan Ives highlighted the launches in a note to investors, stating, 'We believe the launch of a lower cost model represents the first step to getting back to a ~500k quarterly delivery run-rate, which will be important to stimulate demand for its fleet with the EV tax credit expiring at the end of September.' On CNBC, Ives predicted Tesla could exceed 600,000 deliveries per quarter and maintained a $600 price target with an 'Outperform' rating. He emphasized future growth from AI and autonomy, including Full Self-Driving (FSD) and the Cybercab, projecting a $2 trillion market cap by early 2026 in a bull case.
Tesla reported 497,000 vehicle deliveries in Q3 2025, up 7% year-over-year, showing demand resilience. Reactions to the Standard models have been mixed, with some criticizing the small price gap to Premium trims—$3,000 for Model 3 and $5,000 for Model Y—potentially pushing buyers upward. In Europe, the Model Y Standard at €39,990 offers a larger €10,000 savings over the Premium at €50,990, making it more appealing. Deliveries for the new variants begin in November.
