For over a year, Tesla has been hinting at the arrival of “more affordable models,” and on Tuesday, the company officially introduced them. Now available for purchase are simplified versions of the Model 3 sedan and Model Y SUV, with starting prices of $36,990 and $39,990, respectively.
These new “Standard” editions offer an estimated driving range of 321 miles per full charge and are equipped with fewer amenities compared to the higher-end rear-wheel or all-wheel drive models.
Introducing these less expensive vehicles is part of Tesla’s strategy to regain momentum after experiencing a drop in sales in 2024. However, the new prices are higher than some anticipated, especially since CEO Elon Musk once floated the concept of a $25,000 Tesla—a plan that was eventually abandoned.
The latest Model 3 still does not fall below the $35,000 mark that Tesla once advertised ahead of the car’s 2016 debut. That price point, which played a key role in boosting Tesla’s profile, was only briefly available as a special off-menu option.
This story is still unfolding…
