Tesla Motors/via REUTERS
- Tesla unveiled a more affordable Model Y and Model 3, starting at $39,990 and $36,990, respectively.
- These models lack features such as Autosteer, have a reduced range, and lower hardware capabilities.
- Tesla will face competition from cheaper EVs like the Nissan Leaf and the Hyundai Ioniq 5.
Tesla's long-awaited "most affordable" models finally met the world on Tuesday. But the slightly lower price points come at the cost of some of Tesla's signature features.
Named "Model Y Standard" and "Model 3 Standard," Tesla said that the former, a midsize crossover SUV, has a starting price of $39,990,while the latter, a midsize sedan, would cost $36,990, both including destination and order fees.
"Meet Model Y Standard & Model 3 Standard — our most affordable vehicles," Tesla posted on X. "Ultra-low cost of ownership, engineered for safety & comes with the best Tesla features you love."
Both vehicles are $5,000 to $5,500 cheaper than their premium versions, and they will be available startingin November.
Some key features will be missing in the less expensive models:
- Neither will have the "Autosteer" feature of Autopilot. Both include basic adaptive cruise control, automatic emergency braking, and blind-spot monitoring.
- The Full Self-Driving function for these modelsis available as an $8,000 extra
- Both are rear-wheel drive with a single motor instead of all-wheel drive
- The EPA estimated range will be slightly reduced to 321 miles
- No rear screen for passengers
- No leather seats
- No radio
- No panoramic glass roof for the standard Model Y
- No adaptive high beams for the standard Model Y
The standard Model Y will come with a regular metal roof, textile-accented vegan leather seats, and a simpler lighting design.
Tesla's global sales and profits have seen a significant decline in 2025. However, the end of the $7,500 federal EV tax credit boosted its third-quarter sales as buyers rushed to purchase before the expiration date.
The price reduction in Tesla's stripped-down versions doesn't entirely compensate for the absence of the federal tax credit, but states like California, Colorado, New Jersey, and New York still have tax credit programs in place to incentivize EV purchases.
Tesla's cheaper models will now be in a rivaling market with some other popular EV brands. The Nissan Leaf, which starts at just $30,000, remains America's cheapest EV with a range comparable to Tesla's. In September, Korean carmaker Hyundai also gave its Ioniq 5 EV a significant price cut, with a starting price of $35,000.
Tesla did not immediately respond to a request for comments.
Read the original article on Business Insider
