With the official release of its long-rumored “Standard” versions of the Model 3 and Model Y, Tesla has lowered entry prices, but there is a catch. Although these trims are the cheapest in Tesla’s current lineup, buyers now pay more because a significant federal incentive has been eliminated. 
The New Tesla Model 3 and Model Y Pricing
The starting price for the Tesla Model Y Standard is now $39,990, while the starting price for the Model 3 Standard is $36,990.
By undercutting the new “Premium” trims by $5,000 for the Model Y and $5,500 for the Model 3, these prices initially appear attractive.
But for buyers, the timing couldn’t be worse. Both entry-level models were eligible for a $7,500 federal EV tax credit until just one week ago; this credit is frequently applied immediately at the time of purchase.
After deducting that credit, the Model Y cost $37,490 and the previous Model 3 cost $34,990. This means that the “cheaper” Standard versions of today are actually $2,000 to $2,500 more expensive than their predecessors.
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What’s Missing in the New Standard Trims
To achieve those lower base prices, Tesla has made significant feature reductions, particularly in the Model Y Standard.
Battery and Performance Changes
- Smaller battery: Both the Model 3 and Model Y Standard trims use a 69 kWh battery with a single rear-wheel drive motor.
- Reduced range:
- Model 3 Standard – 321 miles (down from 363 miles in the Premium).
- Model Y Standard – 321 miles (down from 357 miles).
- Performance:
- Model 3 Standard: 0–60 mph in 5.8 seconds.
- Model Y Standard: 0–60 mph in 6.8 seconds.
- Both top out at 125 mph.
Interestingly, despite the smaller battery, charging speeds have improved, offering quicker recharge times.
Interior Cost-Cutting Measures
The most noticeable changes are inside the cabin. Tesla has removed or simplified several features across both vehicles:
Seats: Replaced vegan leather with mixed textile materials.
Audio system: Cut from a 15-speaker premium setup to a basic seven-speaker system.
Infotainment: Removed the rear touchscreen and replaced automatic air vents with manual ones.
Comfort features: No ventilated front seats or heated rear seats.
Controls: Steering wheel and side mirrors are now manual, not electric.
Even the AM/FM radio is gone—another move to reduce production costs.
Suspension, Autopilot, and Exterior Changes
Tesla also simplified several mechanical and software features:
Suspension: Switched from advanced frequency-dependent shocks to basic passive dampers.
Autosteer: The lane-centering feature once standard on all Teslas now requires a subscription or purchase of Full Self-Driving (Supervised).
Wheels and Paint:
Standard 18-inch wheels (19-inch optional).
Limited color palette: Stealth Grey (free), Pearl White ($1,000), and Diamond Black ($1,500).
An especially odd choice was made by Tesla, who chose to cover the panoramic glass roof with fabric instead of replacing it with a metal one. According to analysts, hiding the glass was less expensive than completely redesigning the roof’s design.
What You Still Get
Despite the cutbacks, both Tesla Model 3 and Model Y Standard trims retain essential Tesla features:
- 15.4-inch center touchscreen
- Full suite of active safety systems
- Hands-free power trunk
- Multiple USB-C ports and phone chargers
The remainder of the lineup was also renamed by Tesla; the base models are now known as “Premium” trims.
Although the official entry price for the Tesla brand is technically reduced by the Model 3 and Model Y Standard models, buyers will actually pay more than they did just a week ago due to the loss of the $7,500 tax credit.
In summary, although these new EVs appear to be easier to use and more reasonably priced, the possibility of a genuinely inexpensive Tesla is still unattainable.
It’s interesting to note that the “new” Model 3 Standard, which retails for about $46,700 abroad, has been available for purchase in Europe since the launch of the updated lineup.
