Tesla unveils cheaper standard Model 3 and Model Y variants
Tesla announced stripped-down Standard versions of its Model 3 sedan and Model Y SUV on October 7, 2025, aiming to boost sales after the end of the federal EV tax credit. The new models start at $36,990 for the Model 3 and $39,990 for the Model Y, but lack several features found in Premium trims. Deliveries are expected to begin in November for the Model Y and December for the Model 3.
Tesla's announcement came amid a slowdown in EV sales and the expiration of the $7,500 federal tax credit on September 30, 2025. Production of the Standard models began in June 2025, with the company renaming its higher trims as Premium to distinguish the lineup. The Model Y Standard offers an EPA-estimated range of 321 miles, while the Model 3 Standard also achieves 321 miles, compared to 357 miles and 363 miles respectively for the Premium versions.
Key differences include the absence of Autosteer lane-centering, AM/FM radio, and LED light bars on the Standard models. The Model Y Standard features an obscured glass roof, covered by an interior headliner despite retaining the external glass panel, which Tesla representatives confirmed is a cost-saving measure. Both models use cloth seats instead of vegan leather, have manual-adjust steering wheels, and come with 18-inch wheels standard. Acceleration is slower, with the Model Y Standard reaching 0-60 mph in 6.8 seconds versus 5.4 seconds for the Premium, and the Model 3 Standard at 5.8 seconds versus 4.9 seconds.
DC fast charging adds up to 160 miles in 15 minutes for the Model Y Standard and 170 miles for the Model 3 Standard, slightly less than Premium variants. Paint options are limited to three colors, with Stealth Grey standard. Analysts expressed disappointment; Wedbush's Dan Ives stated, 'We are relatively relatively disappointed with this launch,' noting the prices fall short of expectations for broader affordability. Tesla's stock fell nearly 4.5% following the reveal, reflecting investor concerns over competition from cheaper EVs like the Hyundai Ioniq 5 and Nissan Leaf. The move addresses a 6% year-to-date global sales decline but may cannibalize Premium sales.