Tesla has unveiled lower-cost versions of its two best-selling electric vehicles, the Model Y and Model 3, as part of a broader effort to revive slowing sales.
The new ‘Standard’ trims, revealed in the US overnight, strip back certain features and reduce battery capacity, lowering the starting price of the Model Y to $39,990, around $5,000 cheaper and the Model 3 to $36,990, a $5,500 reduction compared to the next model up.
A Cheaper Tesla at Last
The launch delivers on Elon Musk’s long-standing promise to produce a more affordable Tesla. However, the announcement was met with skepticism from investors, who sent the company’s stock down 4.5% to $443.09 on Tuesday. Analysts said the updates lacked the innovation needed to significantly boost demand after a challenging year marked by declining sales, increasing competition from China, and consumer boycotts of Musk himself.
Performance and Range
Tesla says the new Standard versions are its most efficient models to date, capable of up to 321 miles of range under the US EPA test cycle. This should translate to roughly 350 miles under Europe’s more lenient WLTP standard.
The Model Y Standard features a smaller battery (capacity undisclosed), aerodynamic tweaks, and new bumper designs, alongside reworked 18-inch wheels and a return to traditional separate headlight clusters. While more efficient, it’s slower - accelerating from 0–62 mph in 6.8 seconds, over a second slower than the Long Range version and twice as slow as the Performance model.
Inside, Tesla has gone even more minimalist. The cabin includes new soft-touch textile seats and additional storage space, though several premium features have been removed to cut costs. The car still comes with Autopilot and the hardware for Full Self-Driving (FSD), though FSD remains illegal in the UK.
The Model 3 Standard sacrifices a few more creature comforts: it drops the subwoofer, FM/AM radio, rear touchscreen, ambient lighting, and replaces powered adjustments for the steering wheel and mirrors with manual controls.
Tesla has yet to confirm whether these cheaper trims will be offered in the UK.
UK Updates: More Range, Better Cameras, and a Return of the Indicator Stalk
While British drivers won’t see the new Standard models just yet, Tesla has announced a series of hardware upgrades for existing Model 3 and Model Y vehicles in the UK.
These include improved battery packs with higher-density cells, extending driving range by 5 to 30 miles, depending on the model. The Model 3 Long Range Rear-Wheel Drive now boasts an official 466-mile range, up from 436 miles - enough to travel from London to Edinburgh on a single charge.
Other updates include a front-facing camera with integrated heating and a washer system to maintain visibility in bad weather.
Notably, Tesla is also reintroducing the indicator stalk, a traditional feature that was controversially removed during the 2023 “Highland” redesign. The stalk will now return on new Model 3s and as an optional retrofit.
No Change in UK Pricing
Despite the upgrades, Tesla says prices for its UK lineup remain unchanged:
- Model 3 from £39,990
- Model Y from £44,990
- Model 3 Performance at £61,990
All updates are now available through Tesla’s online Design Studio.
