Tesla Unveils Affordable Versions of Model 3 and Model Y: Starting at Just $42,000, Poised to Compete with Chinese EVs

Over the past few years, Elon Musk has consistently promised the launch of affordable Tesla models. Now, the answer is clear. Essentially, these are cost-reduced versions of the Model 3 and Model Y, named the “Standard” variants. Alongside this, Tesla has reorganized its product lineup. The new entry-level models are the Standard versions, while the Long Range models have been renamed Premium, and the Performance models remain at the top of the range.

Lower Price, Fewer Features

The Tesla Model 3 Standard starts at $36,990, which is $5,500 less than the previous Long Range RWD model. Meanwhile, the Model Y Standard starts at $39,990, a $5,000 reduction compared to the RWD Premium version.

Both models feature rear-wheel drive, a single motor, and a 69 kWh battery pack.

Tesla Model Y Standard

The Model Y Standard offers a range of 516 km, down from the 597 km of the RWD Premium version. Acceleration is also slower, reaching 97 km/h in 6.8 seconds from a standstill, compared to 5.4 seconds for the Premium model. The top speed remains at 200 km/h.

However, the specifications are only part of the story. Tesla has refined many details on the vehicle. For instance, the front bumper has been simplified with redesigned air intakes and daytime running lights now integrated into the headlights.

The wheel size has been reduced to 18 inches, with an optional 19-inch upgrade. The car is available in three colors: gray, pearl white (an additional $1,000), and diamond black (an additional $1,500).

The most significant changes are inside the cabin. Leather seats have been replaced with fabric upholstery, and the center console now includes a large storage compartment reminiscent of the Cybertruck. Front-seat ventilation and heating have been removed, and rear passengers no longer have an 8-inch entertainment screen. The steering wheel is manually adjustable, rather than electric.

Tesla has also downgraded the sound system, equipping this version with 7 speakers instead of the 15-speaker setup with subwoofer found in higher trims. The FM/AM radio has also been removed.

Even the rearview mirror is manually adjustable and lacks auto-dimming functionality. The second-row seats are now manually foldable, and interior ambient lighting has been eliminated. Looking up, you’ll notice the Model Y Standard has replaced the glass roof with a standard roof made of sound-absorbing material. However, the glass roof isn’t gone—it’s simply hidden above the new roof. Retaining the glass roof appears to be more cost-effective than manufacturing an alloy roof.

Model 3 Standard

Meanwhile, the Model 3 Standard offers a range of 527 km, down from the 584 km of the RWD Premium version. This sedan accelerates from 0 to 96 km/h in 5.8 seconds and reaches a top speed of 200 km/h.

Exterior changes for the Model 3 are more subtle compared to the Model Y. The most notable difference is the 18-inch wheels, with the same three color options: standard gray, pearl white, and diamond black.

Inside, the cabin features similar cost-cutting measures as the Model Y but retains the glass roof. Fabric seats replace leather, the steering wheel is manually adjustable, the rear touchscreen is removed, and the sound system is simplified.