Tesla Expands Lineup with Standard-Range Model 3 and Model Y
Tesla has expanded its lineup with a new Standard-Range Model Y, targeting the North American market. This move comes after much anticipation for a more affordable entry-level model. Although Tesla initially aimed to launch a $25,000 Model 2, plans for that vehicle were postponed last year.
Tesla’s New Standard-Range Model Y
The Standard Range Model Y is priced at $39,990. It offers an EPA-rated range of 321 miles (516 km) thanks to its rear-wheel drive configuration. This new variant provides an alternative to the Premium rear-wheel drive Model Y, which boasts a higher EPA range of 357 miles (574 km).
Specifications and Features
- Starting Price: $39,990
- Range: 321 miles (516 km)
- Battery Pack: 69 kWh
While Tesla has previously software-locked batteries to limit their capacity, the new Standard-Range Model Y seems to utilize a full 69 kWh pack. However, the vehicle does exhibit several cost-cutting measures compared to its premium counterpart.
Cost-Cutting Adjustments
The Standard-Range Model Y features notable changes, including:
- No AM or FM radio
- No rear touchscreen for climate control
- Metal roof instead of panoramic glass
- Simplified center console
- Manual steering wheel adjustment
- Limited interior trim options
- Less efficient particulate filter (no HEPA mode)
- No rear seat heating or front seat cooling
Sales of electric vehicles (EVs) have become crucial for Tesla, especially as they prepare for potential fluctuations. The removal of the IRS clean vehicle tax credit at the end of September might have positively influenced US EV sales during Q3 2025. However, a significant decline in sales is predicted for the ongoing quarter.
As Tesla adapts its models to meet market demand, the introduction of the Standard-Range Model Y marks a strategic effort to attract budget-conscious consumers, despite some compromises in features and technology.
