Tesla has introduced "affordable" versions of the Model 3 and Model Y, but it's not quite what Musk promised
Tesla has announced the release of two new electric vehicles — the Model 3 Standard and Model Y Standard , which are positioned as "affordable" versions of popular models. Both cars are available for order now, with first deliveries scheduled to begin in December 2025.
The Model 3 Standard will start at $38,640, and the Model Y Standard will start at $41,600. This is about 20% cheaper than the updated versions of the cars on which they are based. However, the "budget" is achieved due to a significant reduction in equipment.
Both models have a range of up to 516 km , a 15.4-inch multimedia screen, a voice assistant based on the Grok AI, heated front seats and steering wheel. At the same time, Tesla has removed a number of functions: a panoramic roof, electric folding mirrors, interior lighting, an additional display for passengers, door lighting and some comfort elements. The wheels have become 18-inch instead of 19-inch, and the paint options are limited to three colors.
Inside, the audio system has also been simplified — only 7 speakers instead of 15, without a subwoofer and radio. The steering wheel is manually adjustable, the shock absorbers are passive, and the driver assistance system is deprived of the Autosteer function. Both cars have rear-wheel drive and accelerate to 100 km/h in 6.8 seconds. On a fast charge, they add 240 km of range in 15 minutes.
Analysts expect the cheaper models to be a boost to Tesla's sales. According to forecasts, the company will be able to sell up to 1.85 million cars in 2026 thanks to the new versions. However, there is a risk that the new models will simply "pull" some customers away from the standard Model 3 and Model Y, and a real breakthrough will not occur.
Elon Musk has been promising since 2018 to release a $25,000 electric car that would radically change the market. In 2020, he even predicted the production of up to 20 million such cars per year. However, the company focused on expensive models, in particular the Cybertruck, which turned out to be a failure.
Instead of a truly mass-produced "people's" car, Tesla offers simplified versions of existing models. And while they are cheaper, this is far from the electric car that buyers have been waiting for.
Tesla reported a sales increase in the third quarter of 2025 after a prolonged decline. The company delivered 497,099 cars, which is 7.4% more than last year. Despite this, many analysts predict difficult times for the electric car manufacturer.