Tesla has officially launched ‘affordable’ versions of its two best-selling EVs, the Model 3 and Model Y, under a new “Standard” configuration. Instead of unveiling the long-awaited $25,000 Model 2, the company has stripped away key features to bring prices down.
The Standard Model 3 now starts at $36,990, while the Standard Model Y begins at $39,990 in the United States. Both are rear-wheel-drive models with simplified interiors, but customers will need to accept several compromises to reach these lower price points (no surprises there).
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What has been removed?
So, Tesla has removed the full-width light bars, replaced larger wheels with smaller 18-inch ones, and taken out several premium features. Ambient lighting, leather seats, passenger entertainment screens, and power-adjustable vents are gone. Even the HEPA filter and Bioweapon Defense Mode have been removed, which could be bad news for allergy sufferers.
The sound system now has fewer speakers, FM and AM radio support has been cut, and several electric features like power mirrors and automatic seat adjustments have been replaced with manual versions. Suspension has also been downgraded to basic passive shock absorbers.
Any Performance compromises?
Performance has taken a hit as well. Both models now deliver an EPA-estimated range of 321 miles, around 40 miles less than their Premium counterparts. They still include software perks such as Trip Planner, Sentry Mode, Dog Mode, and real-time Supercharger availability.
More than these aforementioned compromises, what is really intriguing is the sheer timing of the announcement of these ‘Cut Down’ versions. The federal EV tax credit in the United States is being reduced, which means that most electric vehicles are becoming more expensive. Ironically, the cheaper Standard models may end up costing buyers more once incentives are factored in.
Some industry insiders believe this is a clever pricing tactic. The entry-level cars may serve only to lure customers toward more expensive trims. Others say the company has taken a step backward, especially since the recent Model 3 and Model Y refresh had corrected many earlier flaws.
Rivals such as BYD, Xpeng, Jaecoo, and Omoda are offering feature-packed electric cars at competitive prices. Tesla’s Standard range may struggle to match their overall value, especially outside the United States, where these Chinese brands are expanding rapidly.
