Tesla has quietly rolled out new entry-level versions of its popular Model 3 and Model Y, marking one of its most aggressive price adjustments in years.
According to CNET, the move introduces lower-cost configurations aimed squarely at first-time EV buyers and follows a rocky sales year for the company.
The Model 3 Standard Rear-Wheel Drive now starts at $36,990, while the Model Y Standard opens at $39,990. Both come with an estimated 321 miles of range, powered by a 69-kilowatt-hour battery capable of adding up to 170 miles in about 15 minutes on Tesla's Supercharger network.
The refreshed trims cut costs by removing some premium features, like rear heated seats, HEPA filters, and matrix LED headlights, while keeping Tesla's signature minimalist interiors and touchscreens.
Inside, both models trade some automation for simplicity. Drivers will find manual seat and mirror adjustments and fewer cabin extras, but key features like heated front seats, dual-zone climate control, and adaptive high beams remain.
Tesla's Full Self-Driving package is still optional, available for $8,000 or a $99 monthly subscription.
This strategy arrives as Tesla faces slowing demand and rising competition from brands like Hyundai, Kia, and Ford.
According to Cox Automotive, Tesla's U.S. sales in 2025 have declined year-over-year for the first time since 2020, putting pressure on the company to regain market share through affordability rather than luxury add-ons.
From an environmental perspective, the new trims could broaden EV adoption by lowering the price barrier, helping more drivers transition from gas to electric. However, sustainability advocates note that affordability must align with responsible sourcing of battery materials, which has been a recurring challenge in Tesla's supply chain.
For buyers planning to go electric, charging at home remains the cheapest option, saving hundreds per year compared with public stations.
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Tesla's new Model 3 and Model Y configurations signal a shift back toward the company's roots: accessible, high-efficiency EVs for mainstream buyers.
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