Tesla doubles down on cut price models with new Model 3 and Model Y Standard
Tesla has surprised the market by launching not just a Standard version of the Model Y, but also a stripped back Model 3.
Both newcomers follow a similar formula: simplified features, smaller batteries, and lower prices. In the US, the Model 3 Standard starts at US$38,630, while the Model Y Standard begins at US$41,630 (including destination fees), representing savings of between $5000 and $5500.
Stripped-back but still capable
To achieve these new price points, Tesla has pared back features across both models. The Model 3 and Model Y Standards swap the fake leather for cloth trim, lose ventilated and heated rear seats, and feature manual steering wheel adjustment. The rear touchscreen and ambient lighting have also been deleted, while a metal roof replaces the glass one on the Model Y.
Read more – 2026 Tesla Model 3 gains 750km Long-Range option and an indicator stalk
Both entry models retain Tesla’s signature 15.4-inch central touchscreen, access to over-the-air updates, and optional Full Self-Driving (Supervised) capability for US$8,000. Buyers can still personalise their cars with limited paint options (grey, white, or black) and 18-inch wheels as standard.
Range and Performance
Despite the lower price tags, range remains competitive. Each delivers an estimated 321 miles (517 km) per charge. The Model 3 Standard sprints from 0–60 mph in 5.8 seconds, while the Model Y takes 6.8 seconds. Both are rear-wheel-drive and feature scaled-down battery packs — 69.5 kWh in the Model Y — with slightly slower charging speeds compared to higher trims.
Value Play
The new entry-level Teslas represent a US$5,000–5,500 saving over their previous base models.
Deliveries for the Model 3 Standard are expected to begin in December or January, while the Model Y is available to order now in the US. Tesla has yet to confirm whether the Standard model will be offered in international markets including New Zealand.
