Tesla unveiled cheaper versions of its Model 3 and Model Y after the expiration of the $7,500 U.S. federal EV tax credit.
The Model 3 Standard will start at $38,630, while the Model Y Standard will cost $41,630, both including destination and order fees. Deliveries are expected by early 2026.
Model Y Standard & Model 3 Standard are here pic.twitter.com/e2kXwAaQ0O
— Tesla (@Tesla) October 7, 2025
The new variants are $5,000–$5,500 cheaper than the existing “Premium” versions, part of Tesla’s push to remain competitive as rival automakers, including Hyundai, introduce lower-priced EVs.
Meet Model Y Standard & Model 3 Standard – our most affordable vehicles
— Tesla (@Tesla) October 7, 2025
Ultra-low cost of ownership, engineered for safety & comes with the best Tesla features you love
– 321 mi of range
– Extreme efficiency that takes you farther + saves you $$
– Minimal maintenance
– Can… pic.twitter.com/2cMQ5NW6Yf
Tesla recently posted record third-quarter global sales, driven by pre-credit purchases, but also faced declines in the first half of the year amid rising competition from China’s BYD, now close to overtaking it as the world’s top EV seller.
The company has also been contending with political backlash tied to CEO Elon Musk’s role in the Trump administration and his polarizing public statements.
Also read:
TIPP Staff
TIPP Staff
