Tesla Adds Standard-Range Model 3 and Model Y
▼ Summary
– Tesla has launched a new Standard Range Model Y in North America, priced at $39,990 with 321 miles of range.
– The cheaper Model Y replaces the previously anticipated $25,000 Model 2, whose development was shelved as Elon Musk shifted focus to humanoid robots.
– Tesla’s sales may decline in the current quarter, despite a potential boost from the expiring IRS clean vehicle tax credit in Q3 2025.
– The Standard Range Model Y features a 69 kWh battery pack and is rear-wheel drive, offering less range than the Premium Model Y’s 357 miles.
– This model is decontented with no AM/FM radio, rear touchscreen, panoramic glass roof, and reduced interior features like seat heating and cooling.
Tesla has officially launched a more affordable Standard Range version of its popular Model Y crossover for the North American market. This move arrives as the company shifts its focus away from previously rumored budget models, aiming instead to broaden the appeal of its existing lineup. While many anticipated the arrival of a $25,000 “Model 2,” that project was reportedly canceled after CEO Elon Musk redirected the company’s priorities toward other ventures, including humanoid robotics.
Despite this strategic pivot, automotive sales continue to represent the vast majority of Tesla’s income. The recent expiration of the federal EV tax credit likely contributed to a sales surge in the third quarter, but analysts now predict a notable downturn for the current period. Introducing a lower-priced variant is seen as a direct response to sustain market momentum.
Priced from $39,990, the new Standard Range Model Y is a rear-wheel-drive vehicle offering an estimated 321 miles of range. This positions it below the Premium RWD Model Y, which boasts 357 miles on a single charge. While Tesla has historically used software to limit battery capacity on some models, it is believed this new variant is equipped with a physically smaller 69 kWh battery pack.
To achieve this lower price point, Tesla has removed or simplified several features. The vehicle no longer includes an AM/FM radio or a rear passenger touchscreen for climate control. The roof is now made of metal instead of panoramic glass, and the center console has been simplified. Further reductions include a manually adjustable steering wheel, fewer choices for interior trim materials, a less capable air filtration system without a HEPA mode, and the removal of heated rear seats and ventilated front seats.
(Source: Ars Technica)
