Tesla Introduces Two Affordable “Standard” Models – Model 3 and Model Y Start from $36,990
Tesla has officially unveiled two new entry-level versions of its most popular electric vehicles — the Model 3 and Model Y. Both now come in a new Standard configuration, marking a strategic move by Tesla to make its lineup more accessible amid growing competition and changing incentives in the U.S. electric vehicle market. Prices start at $36,990for the Model 3 Standard and $39,990 for the Model Y Standard, effectively lowering the entry point for Tesla ownership by over $5,000 compared to the previous base models.
More Affordable, Simplified, Yet Still Tesla
The new Standard versions have been designed with cost efficiency in mind. Tesla reduced equipment and simplified trim options, focusing on the essentials while maintaining core performance and safety features. This shift allows the brand to appeal to budget-conscious buyers who still want the Tesla experience — minimalist design, electric performance, and access to the brand’s charging ecosystem.
Among the deleted features are ventilated front seats, heated rear seats, ambient interior lighting, and the secondary rear touchscreen. The premium leather upholstery is replaced by durable fabric, and the number of speakers has been cut from 15 to 7. Even seat and mirror adjustments are now manual rather than electric.
Exterior Changes and Streamlined Options
The Model Y Standard loses its signature LED light strip that once connected the front headlights, as well as the panoramic glass roof. Both models come with simpler 18-inch alloy wheels and standard suspension rather than adaptive dampers.
The color palette is intentionally limited to white, black, and gray, with the first two options available for an additional fee. These subtle changes reduce production complexity and help Tesla optimize manufacturing costs at its Fremont and Austin plants.
Performance and Battery Specs
Despite cost-cutting measures, both Standard models remain impressive on the technical front. They are equipped with a 69 kWh lithium-ion battery, offering a driving range of up to 517 km (321 miles) under the EPA cycle. This range is only slightly lower than that of the more expensive trims.
Performance figures are respectable as well — 0 to 60 mph (96 km/h) in 6.8 seconds, which keeps both models competitive with mainstream EVs from Hyundai, Ford, and Volkswagen. Top speed remains electronically limited at 200 km/h (124 mph).
Market Strategy and Positioning
Tesla’s decision to launch these new variants comes at a critical time. The company is no longer eligible for certain U.S. federal tax credits due to the origin of some battery components, and competitors such as Rivian, Ford, and Hyundai are aggressively targeting the mid-range EV segment.
By offering simplified and more affordable versions, Tesla aims to maintain sales momentum in its domestic market. The new Standard trims will likely attract first-time EV buyers and fleet operators seeking a cost-efficient, zero-emission solution.
Deliveries for both the Model 3 and Model Y Standard are expected to begin in November 2025 across North America.
What’s Next for Tesla
Reports suggest that Tesla’s product roadmap may soon expand with new models, including a large SUV inspired by the Cybertruck and a compact pickup positioned below the current model lineup. Tesla executives have hinted that these vehicles could use a modular platform derived from the company’s next-generation manufacturing system, improving production scalability.
If Tesla manages to balance affordability and innovation, the Standard line could become a new foundation for mass-market expansion — especially in regions like Europe and Asia, where lower prices could dramatically increase accessibility.
