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Tesla Lowers Entry Prices With New Model 3 and Model Y Standard Trims

The lower-cost variants aim to sustain demand after the federal EV tax credit expired.

Overview

  • Tesla introduced U.S. “Standard” versions of the Model Y ($39,990) and Model 3 ($36,990), each advertising about 321 miles of EPA range from a reduced 69 kWh battery pack.
  • The cost cuts come with scaled-back features, including the loss of the Model Y’s panoramic roof, textile seats in place of vegan leather, fewer speakers, manual mirror and wheel adjustments, and removed light bars.
  • Autosteer is not included by default, while Full Self-Driving remains an optional upgrade, offered at roughly $8,000 upfront or via a $99-per-month subscription.
  • Tesla lists estimated delivery windows for the new trims from late 2025 into early 2026, with timing varying by model.
  • Shares fell roughly 4% to 4.5% after the announcement as analysts warned of margin pressure and possible cannibalization from the lower-priced trims in a more competitive EV market.