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Tesla Launches Lower-Priced Model 3 and Model Y Standard Trims in U.S.

The move trades features for roughly $5,000 off to protect demand following the U.S. EV tax credit’s expiration.

Overview

  • The Model 3 Standard starts at $36,990 and the Model Y Standard at $39,990, with U.S. orders open now and initial deliveries slated for December 2025 to January 2026.
  • Both new trims use single‑motor rear‑wheel drive and a roughly 69–69.5 kWh usable battery, claim about 321 miles EPA range on 18-inch wheels, and top out at 225 kW DC fast charging.
  • Cost cuts remove Autosteer, the rear passenger touchscreen, rear seat heating and front seat ventilation, FM radio, and some power adjustments, with fewer colors and simpler materials.
  • The Model Y Standard deletes the full‑width light bar and adopts simpler lighting and a headliner over its exterior glass roof, while Tesla rebrands former Long Range trims as Premium; Full Self‑Driving remains optional at about $8,000.
  • Investor reaction turned negative as Tesla shares fell roughly 4–4.5 percent, and several analysts questioned the limited discount and potential cannibalization versus higher‑margin versions and cheaper rivals.