Tesla on Tuesday unveiled lower-priced “Standard” versions of its two best-selling models — the Model 3 sedan and Model Y SUV a move the company says is intended to make its lineup more affordable as it seeks to blunt slowing demand and rising competition.
The new trims are priced several thousand dollars below Tesla’s recently renamed “Premium” entry levels, though exact reported starting prices vary slightly between outlets. Major U.S. coverage put the Model 3 Standard at about $36,990 and the Model Y Standard at about $39,990. Tesla has pared back some premium features on the new Standard trims — smaller battery packs and fewer convenience or driver-assist options — to reach those lower price points.
Tesla said the two “Standard” models still deliver competitive driving range (many outlets cite an estimated ≈321 miles for the Standard variants) but sacrifice select features found on higher trims such as Autosteer/advanced driver-assist functions, certain interior comforts and high-end lighting packages. Analysts and reviewers immediately noted that the range/feature tradeoffs are designed to protect margins while shaving the sticker price.
Company watchers framed the launch as a tactical response to several pressures. Tesla posted record third-quarter deliveries in the run-up to the expiration of the U.S. federal EV tax credit on Sept. 30, but demand has shown signs of softening as subsidies expire and lower-priced competitors — especially fast-growing Chinese brands — gain share in Europe and elsewhere. Investors reacted coolly to the news: Tesla shares fell several percent after the announcement.
Industry reaction was mixed. Some analysts said the new Standard trims could help Tesla hold on to mainstream buyers without launching an all-new low-cost model (a $25,000 project Tesla once discussed but ultimately shelved), while others warned the price reductions may not be large enough to change buying behavior in a tighter market. Questions were also raised about whether cannibalization of higher-margin trims or thinner per-vehicle profits will follow.
Dealers and Tesla’s online configurator began showing the new Standard trims following the announcement; several outlets report deliveries scheduled late 2025 into early 2026, depending on region and options. Tesla has indicated it will continue to tweak lineup, options and pricing as market conditions develop.
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