Tesla has officially unveiled new “Standard” editions of its top-selling electric vehicles — the Model 3 sedan and the Model Y SUV — in the United States.
The new versions aim to broaden Tesla’s audience by lowering entry prices, even if that means reducing some comfort features. Deliveries are scheduled to start between December 2025 and January 2026.
💰 Pricing and Features
Tesla lowered prices by about $5,000 compared to previous entry-level models, placing them closer to the mid-$30,000 range.
| Model | Starting Price | Approx. Range | Key Differences |
|---|---|---|---|
| Model 3 Standard | $36,990 | 480 km (298 miles) | No heated rear seats, no Autosteer, simplified interior |
| Model Y Standard | $39,990 | 480 km (298 miles) | Reduced battery size, fewer premium finishes |
🔹 Both versions lose access to the $7,500 U.S. federal EV tax credit, which expired on September 30, 2025, making the final consumer price effectively higher.
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CLICK HERE📉 Stock Market Impact
Tesla’s stock reacted negatively after the announcement, closing down 4.5% on the Nasdaq on Tuesday (7). Investors appear concerned about profitability and the brand’s ability to compete in the growing mid-range EV market.
🌍 Global Competition
Tesla is making this move amid increasing competition from Chinese and European automakers, many of whom already offer electric cars priced under $30,000.
- In the U.S., the Model 3 Standard will compete directly with the Chevrolet Equinox EV, Hyundai Ioniq 5, and the upcoming Kia EV4.
- In Europe, Tesla faces over a dozen competitors in the same price segment, particularly among compact EVs and plug-in hybrids.
🚀 Tesla’s Long-Term Focus
Despite the shift to lower-priced vehicles, Tesla continues to emphasize:
- Profitability over volume
- Technology leadership in autonomous driving
- Future expansion of its robotaxi project
The Standard versions represent a strategic adjustment rather than a complete pivot to budget-friendly cars. Instead of developing a new compact model under $30,000, Tesla opted to streamline its current lineup while keeping range competitive.
✅ Bottom Line: Tesla is betting that affordability will boost sales in the short term while it continues to invest in autonomy and advanced EV technology.
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