Key Takeaways
- Tesla introduced “Standard” versions of the Model 3 at $36,990 and the Model Y at $39,990.
- To cut costs, these models lack features like the all-glass roof, a second-row touchscreen, and the full Autopilot suite with Autosteer.
- The new models retain key Tesla features, including the large center touchscreen, integrated Grok AI, Sentry Mode, and access to the Supercharger network.
- The release is a key part of Tesla’s strategy to reignite growth after a sales decline in 2024.
After more than a year of hinting at more affordable options, Tesla has finally pulled back the curtain. The company is now selling more bare-bones “Standard” versions of its popular Model 3 sedan and Model Y SUV, priced at $36,990 and $39,990, respectively. The move is a clear attempt to spur growth after a recent sales slump.
These new models achieve their lower price point by stripping out some of the premium features Tesla is known for. The interior philosophy takes minimalism to an extreme, with manually adjusted steering wheels and side mirrors. The iconic all-glass roof is gone, as is the second-row touchscreen. The most notable omission is the full Autopilot feature-set; the “Standard” models come with traffic-aware cruise control but lack the Autosteer function.
Despite the cost-cutting, Tesla emphasizes that the “Standard” models are engineered for safety, offer an ultra-low cost of ownership, and retain many of the signature features owners love. With an estimated 321 miles of range, the package includes:
- Entertainment: A 15.4″ center touchscreen with Tesla Theater (including streaming platforms) and the Tesla Arcade for video games.
- AI Integration: Integrated Grok AI for assistance and information.
- Convenience & Safety: Signature features like Sentry Mode, Dog Mode, Camp Mode, Trip Planner, and Cabin Overheat Protection.
- Tesla App Control: Full app integration for Phone Key, vehicle preconditioning, and a live Sentry Mode camera view.
- Comfort: Heated first-row seats and a heated steering wheel, finished in a dual-tone textile and vegan leather.
- Charging: Access to Tesla’s global network of over 70,000 Superchargers.
The release of these cheaper models sets up an interesting dynamic in the increasingly competitive EV market. While major automakers like Ford and GM are also developing their own low-cost EVs, Tesla’s new offerings are available now and will likely put pressure not only on competitors but also on its own more expensive variants and the used Tesla market.
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