Tesla has finally launched a range of more affordable electric cars. These aren’t all-new cars, but rather stripped-back versions of the refreshed Model Y and Model 3 to lower the starting cost, making it easier for more people to step into Tesla ownership.
This change is long overdue. As someone who’s spent plenty of time behind the wheel of both EVs, I see it as a move that could significantly boost Tesla ownership.
The idea is simple: Make the same design and driving experience accessible to more people by eliminating the extras that most owners rarely use. In my view, that’s a smart move.
It comes at a time when electric vehicle shoppers will be seeking more affordable options. According to June figures from Kelley Blue Book, the average new vehicle transaction price in the US sits at $49,077, while EVs cost $57,245 on average. That’s lower than the market peak in December 2023, but it’s still about $10,500 higher than five years ago.
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How much do Tesla’s cheaper cars cost, and what do they come with?
This is what the rear of the Tesla Model Y Standard looks like. It has the same light bar as the regular version.
The Model Y Standard Rear-Wheel Drive starts at $39,990 and delivers an EPA-estimated range of 321 miles, a 0-60 mph time of 6.8 seconds and a peak charging rate of 225 kW. It’s powered by a 69 kWh battery and produces about 300 horsepower. This version uses one fewer battery module than the higher trims and is 5% more efficient than the Model Y RWD.
Inside, it features an open-concept center console similar to the Cybertruck, as well as textile doors and dashboard trim. The 10-way driver and four-way passenger seat controls are now managed via the touchscreen, eliminating the need for physical buttons.
Tesla includes a seven-speaker audio system, auto high beams and dual-tone textile and vegan leather seats, but most of the cabin adjustments are manual. That includes the seats, steering wheel and mirrors. The front seats are heated, while the rear ones are not.
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The rear passenger screen has been removed, but the car still includes a mobile charger. The glass roof is now closed internally with a fabric headliner for improved insulation, and the mirrors are manually folding. Also, there’s no HEPA filter, only a particulate and odor filter.
The Model Y Standard comes standard with 18-inch wheels, with 19-inch wheels available as an optional upgrade, and offers 75 cubic feet of cargo space. Towing capacity is 3,500 pounds, and curb weight is 4,061 pounds. It supports Tesla’s well-established Supercharging network and can add up to 160 miles in about 15 minutes. This version is available in three colors: stealth gray, pearl multicoat white and diamond black.
The front of a Tesla Model 3 Standard driving along a road. It looks identical to the regular Model 3.
Meanwhile, the Model 3 Standard Rear-Wheel Drive now starts at $36,990 and shares many of the same hardware and software characteristics. It has the same 69 kWh battery, delivers 321 miles of EPA range and accelerates from 0 to 60 mph in 5.8 seconds thanks to 286 horsepower.
Tesla has added a front bumper camera with a washer like the Model Y, uses vegan leather and textile seating and has touchscreen-controlled seat adjustments instead of physical switches. There are manual second-row folding seats, a manual-adjust steering wheel and mirrors and no rear heated seats or ventilation.
It retains the glass panoramic roof but has acoustic front door glass and tempered rear glass. The rear screen has been removed, and the center console now features uncovered cupholders. It also features a 7-speaker audio setup and the same 15.4-inch touchscreen that dominates the interior.
Charging speeds are identical at up to 225 kW, and Tesla claims up to 170 miles of range can be added in 15 minutes. It weighs 3,759 pounds and has 24 cubic feet of cargo space. This trim offers the same three paint choices as the more expensive options.
Both cars ship with manual second-row air vents, ditch the LED strips in favor of footwell and door-pocket ambient lighting only, and come with standard LED headlights with auto adaptive high beams (no matrix LEDs). Interestingly, they also omit Autosteer, although they come with traffic-aware cruise control as standard.
Full Self-Driving is optional, available for $8,000 or via a $99 monthly subscription. Tesla is offering the same four trim levels for each model: Standard, Premium RWD, Premium AWD and Performance.
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I think this new approach makes a lot of sense for Tesla. Instead of chasing the luxury end of the market, this brings the focus back to what originally made the brand so popular: offering long-range, fast-charging, affordable electric vehicles that still feel cutting-edge. By trimming back on extras, the company has created an option that could appeal to first-time EV buyers who might otherwise look at cheaper rivals.
In my experience, Tesla’s biggest strength has always been its software and driving dynamics, and those remain intact here. For anyone on the fence about making the switch to an EV, these new versions of the Model 3 and Model Y could be the most convincing reason yet.
Pricing for the Model Y Standard starts at $39,990, while the Model 3 Standard follows closely behind at $36,990. Global pricing has not yet been announced, but expect it to also undercut the existing Long Range model.
For now, this is the most accessible way to buy a Tesla.
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