Tesla, which has reportedly been teasing the release of "more affordable models" for over a year, finally unveiled them on Tuesday. The company is now selling stripped-down versions of the Model 3 sedan and Model Y SUV, starting at $36,990 and $39,990, respectively.
Both new models, called "Standard," have an estimated range of 321 miles (516 kilometers) on a full charge. When they arrive later this year, they will feature fewer features than higher-end rear-wheel drive or all-wheel drive models—and won't even include Tesla's basic advanced driver-assistance system, Autopilot. (Only Traffic-Aware Cruise Control will be available; Autosteer, the core of Autopilot, is not.)
The introduction of lower-priced models is intended to help Tesla return to growth after a sales decline in 2024. However, this pricing fell short of some expectations, especially considering CEO Elon Musk's previously shelved vision of a "$25,000 Tesla."
The new Model 3's starting price doesn't even dip below $35,000—a price point Tesla heavily promoted before the 2016 Model 3 launch. While this price tag helped Tesla gain market awareness, it never became a regular feature, aside from a few months of being available for order as an "off-menu option."
The differences between the new cars are primarily seen in the interior. While Tesla models are known for their minimalist design, the standard Model 3 and Model Y take this minimalist approach to extremes: the second-row touchscreen is omitted, the steering wheel and exterior mirrors require manual adjustment, and there's no FM/AM radio. The audio system features only seven speakers, while higher-end models have 15 speakers plus a subwoofer. Heating is also available only in the front seats. In terms of appearance, Tesla has cancelled the iconic through-type light strip on the front of the high-end Model Y, and the standard version is no longer equipped with a glass roof.
