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Tesla Launches Lower-Priced Model Y and Model 3 Standard With 321-Mile Range

The pared-back trims aim to reignite demand following the phaseout of U.S. EV credits.

Overview

  • Tesla introduced new Standard versions of the Model Y and Model 3 at $39,990 and $36,990, undercutting prior entry trims by roughly $5,000.
  • Both models use a single-motor rear‑wheel‑drive setup with a 69 kWh battery and offer up to about 321 miles (516 km) of EPA range.
  • The cost cuts remove features such as Autosteer, the panoramic roof, rear passenger display, and premium audio, while retaining HW4 cameras and optional Full Self‑Driving for $8,000 or a $99 monthly subscription.
  • First deliveries are slated to begin between December 2025 and January 2026, according to Tesla’s published timelines.
  • Shares fell about 4% after the announcement following a pre‑reveal rise, as investors weighed margin pressure and cannibalization risks amid intensifying competition and recent battery updates that increased Model 3 ranges.