Tesla (TSLA) finally revealed a stripped-down version of its Model Y, dubbed the Standard, and in a surprise move announced the Model 3 Standard as well.
The two cars are now available for order on Tesla’s US website. The Model Y Standard is rear-wheel drive, will start at $39,990, and has an estimated range of 321 miles with standard 18-inch wheels. The Model 3 Standard comes in even cheaper, at $36,990, and has the same range. While the Model Y Standard is available for November/December delivery, the Model 3 Standard arrives a little later, with a December/January delivery range.
Appearance-wise, the Standard trim omits the front and rear light bars on the Model Y and comes in only three colors: Stealth Grey, white, and Diamond Black. The only interior color available is black.
Tesla stock gained more than 5% on Monday after the EV maker posted gifs on Sunday of a spinning company logo with the date “10/7” and what appeared to be car headlights shining through smoke. Shares pulled back nearly 4% on Tuesday following the update to Tesla’s website.
Inside, both Standard trims feature the same 15.4-inch infotainment screen as the more expensive models. However, there’s no second-row screen, the ambient lighting has been removed, and cheaper cloth seating inserts surround vegan leather, per Tesla’s website. Interestingly, Tesla removed the AM/FM radio tuners from the Standard trim, and the Standard models can only perform “traffic aware cruise control,” Tesla’s version of adaptive cruise control, and are unable to perform “autosteer” functions like Autopilot and Full Self-Driving (FSD).
It is also likely that Tesla has wrung out costs from its batteries and electric motors to make the vehicles cheaper.
The Model Y and Model 3 Standard versions come after the federal EV tax credit expired in the US on Sept. 30. CEO Elon Musk said in the company’s second quarter earnings call that the cheaper Model Y would come out after the tax credit expires.
Tesla said following Q2 earnings that the first builds of a more affordable model occurred in June, with volume production planned for the second half of 2025.
Tesla’s release of these cheaper vehicles is expected to help grow volume for the automaker, which has seen sales dip in recent quarters, although Q3 sales jumped as buyers bought EVs ahead of the tax credit expiration.
Last quarter, Tesla CFO Vaibhav Taneja said he expected a pull forward of sales in Q3 because of the tax credit expiration, and the numbers back up that claim.
Tesla reported Q3 deliveries came in at 497,099, easily topping Bloomberg consensus estimates of around 439,800 and the 462,890 units delivered a year ago. Tesla said Q3’s total was a new quarterly record for the company.
Tesla is set to report full Q3 results on Oct. 22 after the closing bell, with the company’s annual shareholder meeting to follow on Nov. 6.
