Affordable! Tesla Launches New Budget Model Y and Model 3 Versions
Tesla once again causes a stir in the world of electric cars! In the USA, the electric car manufacturer has unveiled new, more affordable versions of the Tesla Model Y and the Tesla Model 3. The so-called standard models are intended to make entry into the Tesla world more affordable. Tesla is not replacing the previous variants, but simply expanding the range. The new models will target anyone who has been flirting with the idea of owning a Tesla for a while but has been put off by the price so far.
Price Check: Tesla's New Entry-level Models
Just how much do the new models cost exactly? According to Tesla, the Model 3 Standard starts at $36,990, while the Model Y Standard is priced at $39,990. This means that both will retail for around $5,000 cheaper than the previous basic entries. Of course, there is also a little less equipment in the reach ride. Both vehicles come with a smaller battery capacity (around 69 kWh), which reduces the range slightly. Instead of being able to travel for more than 350 miles, the new versions can now manage approximately 321 miles, i.e., around 517 kilometers—measured according to the American EPA standard.
Less Power, but the Full Tesla Experience
You also have to live with slightly less power: the Model Y Standard accelerates from 0 to 60 mph (i.e., approx. 96 km/h) in around 6.8 seconds, while the Model 3 does so in around 5.8 seconds. Charging capacity at the Supercharger has also been slightly reduced—but fast charging remains as a Tesla advantage.
To enable Tesla to keep its prices down, the manufacturer has cut costs in several areas:
- Lighting design: the striking light bar in front has been simplified or completely removed.
- Interior: Instead of using vegan leather, textile covers are now in place, while ambient lighting has been removed with fewer speakers.
- Comfort: There is more seat ventilation, no screen in the second row, and fewer electrical adjustment options.
- Controls: The steering wheel can now only be adjusted manually, and you have to live without classic AM/FM functions on the radio.
- Roof & insulation: Although the glass roof remains, it has been clad more heavily on the inside for additional insulation, peace, and quiet in the interior.
- Colors: Only a few paint finishes are available to choose from—gray is free, but do fork out more for black or white.
Despite all these cost-cutting measures, the typical Tesla experience remains: modern software, over-the-air updates, and optional Full Self-Driving (currently requiring mandatory supervision still).
Why Tesla is Taking this Step
There is a clear plan behind the price reduction: demand in the USA has fallen recently, mainly because government subsidies for electric cars have been withdrawn. With the new entry-level models, Tesla wants to attract more buyers again—primarily those who are price sensitive.
It remains to be seen whether a price reduction of around $5,000 will be enough to convince new customers. In any case, investors remain skeptical: Tesla's share price fell noticeably after the announcement. Nevertheless, it is clear that Tesla wants to broaden the brand appeal and attract new target groups.
When will the Affordable Teslas Arrive in Europe?
Initially, the new models will only be introduced in the USA, with the launch being planned for late 2025 or early 2026. But there is hope for all who are waiting for these cheaper Teslas to appear outside of the USA! Over in Germany, a report in the Handelsblatt newspaper mentioned that the scaled-down version of the Tesla Model Y will also be produced in Grünheide, which is located near Berlin. Tesla Germany boss André Thierig announced that series production could begin "in just a few weeks". In terms of price, the new Model Y is expected to be around ten percent cheaper than the cheapest variant to date—i.e., from around €40,500, while the Model 3 is likely to start at around €36,000. It remains to be seen when these more affordable models will debut in other worldwide regions.
Conclusion: Less Tesla for Less Money
With the new standard models, Tesla is making it clear: electric mobility should be accessible to more people. Of course, you will have to make a few compromises in terms of comfort and range—but the quintessential Tesla experience remains. Hence, if you've been thinking about entering the Tesla world for a while, now could be the perfect time.
