Tesla has officially launched its budget-friendly models, the Model Y Standard and the Model 3 Standard. The Model Y is priced at $39,990 and offers an estimated range of 321 miles. Meanwhile, the Model 3 Standard comes even cheaper at $36,990.
Tesla’s New Budget-Friendly Models
Both vehicles reflect a strategic shift towards affordability. However, they do come with some feature limitations compared to their premium counterparts. Notably, the Model Y Standard retains “Traffic-aware cruise control,” but it lacks the “Autosteer” driver-assist feature available in other Tesla models.
Key Features and Changes
- Model Y Standard: Priced at $39,990, 321 miles range.
- Model 3 Standard: Priced at $36,990.
- Removes advanced features like “LED lightbar” and “adaptive high beams.”
- Includes traditional “LED headlights” and simplified “Auto high beams.”
- No FM/AM radio in either model.
Consumers choosing the Model 3 Standard can save $5,500 over the Premium variant. Likewise, opting for the Model Y Standard provides a $5,000 discount compared to its Premium version.
Market Response
The announcement did not sit well with investors. Tesla’s stock fell by 3% on the day of the launch, ultimately closing down 4.45%. This decline could indicate market expectations for even lower pricing.
Availability and Incentives
Availability for the Model Y Standard is expected between November and December. The Model 3 Standard will be available from December to January. While Tesla’s federal $7,500 tax credit has ended, New York buyers may still afford these models at even lower prices. The Model 3 Standard could drop to $34,990, while the Model Y Standard may go down to $37,990 after state rebates.
Future Direction
Elon Musk has long indicated a desire to produce a more affordable vehicle, initially hinting at a $25,000 model back in 2018. Despite ongoing delays, he emphasizes the need for affordable electric vehicles to facilitate mass adoption. Tesla continues to focus on improving self-driving technology, which Musk regards as a critical priority for the company.
As the electric vehicle market evolves, Tesla aims to strike a balance between affordability and technological advancements, addressing consumer demand in an increasingly competitive landscape.
