Tesla has spent more than a year teasing that more affordable vehicle models were on the way. On Tuesday, the company finally revealed them. The company is now selling a more bare-bones version of the Model 3 sedan and the Model Y SUV. These start at thirty-six thousand, nine hundred ninety dollars and thirty-nine thousand, nine hundred ninety dollars, respectively.
Each new version is called Standard. They get an estimated three hundred and twenty-one miles of range on a full battery and come with fewer features than the more premium rear-wheel or all-wheel drive variants.
The release of the cheaper models is aimed at helping push Tesla back into growth after it saw sales decline in 2024. The pricing is not as low as some may have hoped. This is especially true considering that CEO Elon Musk once teased the idea of a twenty-five thousand dollar Tesla before he ultimately canceled that project.
The new Model 3 does not even dip below the thirty-five thousand dollar price threshold that Tesla promoted in the run-up to the car’s launch in 2016. That original sticker price, which helped put Tesla on the map, was never really offered except for a few months as an off-menu ordering option.
This story is developing.