Tesla introduced entry-level Standard versions of its Model 3 and Model Y on October 13, 2025, reducing prices by about $5,000 through feature cuts. The move aims to make the vehicles more affordable but has sparked debate over removed essentials like lane-centering assistance. Prices start at $36,990 for the Model 3 and $39,990 for the Model Y.
Tesla unveiled the Standard trims for its Model 3 sedan and Model Y SUV, targeting budget-conscious buyers amid a competitive electric vehicle market. The Model 3 Standard is priced at $36,990, while the Model Y Standard costs $39,990, each saving approximately $5,000 compared to premium variants. These reductions come from omitting features such as Autosteer lane-centering in the base Autopilot system, power-adjustable steering wheels, heated rear seats, and air-conditioned front seats. The Model Y also lacks a glass roof, opting for a fabric headliner, and features cloth seats instead of faux leather, alongside a simplified center console inspired by the Cybertruck.
According to YouTuber Everyday Chris, who tested the Model Y Standard ahead of launch, Tesla explained the Autosteer removal as a strategy to encourage upgrades to Full Self-Driving (FSD) software, priced at $8,000 or $99 monthly. "When I spoke to Tesla, they said the reason why they did what they did was because they want more people to get into Tesla's Full Self-Driving. Because the price of the vehicle is already kind of low, they want you to upgrade to Full Self-Driving. With the new naked Model Y, you've got to steer yourself unless you pay for Full Self-Driving," Chris quoted Tesla representatives.
Exterior changes include partial lightbars—retaining side sections but removing midsections—and standard 18-inch wheels for better aerodynamics. The Model Y Standard achieves 321 miles of range on 18-inch wheels with a 0-60 mph time of 6.8 seconds, while the Model 3 Standard offers 321 miles and 5.8 seconds to 60 mph, powered by a 69.5 kWh battery.
The launch follows Elon Musk's earlier promises of sub-$30,000 Teslas, but U.S. policies have constrained deeper cuts. Tariffs on critical minerals like graphite (93.5% duty) and the elimination of the $7,500 federal EV tax credit after September 30, 2025, under the Trump administration, keep prices elevated. As Travis Fisher of the Cato Institute noted, "What I would criticize about the US's approach to EVs is that they're making it really hard to build supply chains." Tesla manufactures these in Fremont, California, and Gigafactory Texas, where high costs for land, labor, and permits add pressure. In Europe, the Model Y Standard starts at 39,990 euros, but no UK launch is planned soon. Tesla shares fell 4.4% post-announcement, reflecting mixed market reception.
