Tesla has officially launched its long-promised “most affordable” electric vehicles, offering budget-conscious buyers a chance to enter the Tesla ecosystem at a lower cost but not without trade-offs. On Tuesday, the company unveiled the Model Y Standard and Model 3 Standard, two pared-down versions of its popular electric vehicles. The Model Y Standard, a midsize SUV, starts at $39,990, while the Model 3 Standard sedan is priced at $36,990. Both prices include destination and order fees.
In a post on X (formerly Twitter), Tesla said, “Meet Model Y Standard & Model 3 Standard our most affordable vehicles. Ultra-low cost of ownership, engineered for safety & comes with the best Tesla features you love.” Yet despite the familiar branding, these two models arrive notably leaner than their premium counterparts, both in features and functionality. The new price tags reflect a $5,000 to $5,500 discount, but several key elements that Tesla enthusiasts have come to expect are no longer standard.
Most notably, both vehicles omit Tesla’s Autosteer function from the Autopilot suite. While they still come equipped with basic adaptive cruise control, automatic emergency braking, and blind-spot monitoring, buyers wanting Full Self-Driving capabilities will have to shell out an additional $8,000. Furthermore, the cars are rear-wheel drive only, powered by a single motor instead of the dual-motor all-wheel-drive setup found in the higher-end versions. Their EPA-rated range is also slightly lower, topping out at 321 miles.
Beyond drivetrain and software cuts, there are also clear compromises in the interior and hardware. Neither model includes a rear passenger screen or leather seating. The Model Y Standard loses its panoramic glass roof and adaptive high beams, replacing the glass with a metal roof and trimming back lighting features. Interiors come with textile-accented vegan leather seats, which mark a step down from Tesla’s more luxurious options. Even the car’s radio is absent in these versions, highlighting just how many conveniences were stripped away to hit the lower price point.
Tesla’s decision comes at a challenging time for the company. After a steep drop in global sales and profits in 2025, Tesla saw a temporary sales boost in the third quarter as customers rushed to take advantage of the soon-to-expire $7,500 federal EV tax credit. Although these new models are intended to bridge the affordability gap, the price reductions don’t fully offset the absence of that tax benefit. Still, buyers in certain states such as California, Colorado, New Jersey, and New York can benefit from local EV tax incentives that help ease the purchase cost.
The introduction of these stripped-down Teslas positions the automaker in direct competition with other budget-friendly EVs already on the market. Nissan’s Leaf, with a starting price around $30,000, remains the most affordable electric vehicle in the U.S. with a comparable driving range. In September, Hyundai cut prices on its Ioniq 5 EV, which now starts at about $35,000 making it a strong contender in the same segment. In this crowded field, Tesla’s value proposition will now depend on how much buyers are willing to give up in order to drive one of the most recognized names in electric mobility.
Tesla declined to comment when asked for further clarification on the new models or their pricing strategy.
