Tesla expands lineup with budget-friendly Model 3 and Model Y

Tesla has launched its most affordable electric cars yet. The company introduced the Model 3 Standard RWD and Model Y Standard RWD.

To begin with, the launch marks a key step in Tesla’s plan to reach more buyers who want lower-cost electric vehicles.

Model Y Standard & Model 3 Standard are here pic.twitter.com/e2kXwAaQ0O

— Tesla (@Tesla) October 7, 2025

The company is now targeting drivers who were priced out after the loss of the federal incentive.

The Model 3 Standard RWD starts at $36,990 and Model Y Standard RWD starts at $39,990, savings of $6,000 for the Model 3 and $5,000 for the Model Y compared to their Premium trims. Deliveries are expected to start in November 2025, while Tesla’s website lists December 2025 to January 2026 for the Model 3 Standard.

In terms of performance and range, both Standard models use a 69 kWh battery pack that delivers a 321-mile EPA range. This pack has one less module than the 78 kWh pack found in Premium versions.

Performance details include:

• Model 3 Standard: 0–60 mph in 5.8 seconds, 3,759 lbs curb weight
• Model Y Standard: 0–60 mph in 6.8 seconds

Both support 250 kW DC fast charging and include Tesla’s HW4 hardware for future Full Self-Driving use and Integrated Grok AI.

Moving to design and features, Tesla cut costs by simplifying some components but kept important functions.

Exterior changes:

• Single-piece headlights instead of full-width light bars
• Standard 18″ Prismata wheels; optional 19″ Nova wheels
• Three paint options: Stealth Grey (standard), Pearl White (+$1,000), and Diamond Black (+$1,500)

Inside the cabin, several updates focus on practicality:

• Dual-tone seats made from textile and vegan leather
• Heated front seats only; no heated rear or ventilated seats
• Manual adjustments for steering wheel, mirrors, and rear seats
• 7-speaker sound system replacing the 15+ speaker setup
• No rear touchscreen; front 15.4″ display remains
• Removed ambient lighting, AM/FM tuner, and HEPA filter

When it comes to technology and safety, Tesla kept essential systems but trimmed driver-assist features. Traffic-Aware Cruise Control remains standard, but Autosteer is not included. Buyers can add Full Self-Driving (Supervised) for $8,000. Both cars retain a full 360-degree camera system and standard safety functions.

To make the lineup clearer, Tesla has renamed its trims. “Long Range” versions are now called “Premium.”

Model Y lineup:

• Model Y Standard RWD: $39,990
• Model Y Premium RWD: $44,990
• Model Y Premium AWD: $48,990
• Model Y Performance: $57,490

Model 3 lineup:

• Model 3 Standard RWD: $36,990
• Model 3 Premium RWD: $42,490
• Model 3 Premium AWD: $47,490
• Model 3 Performance: $54,990

Tesla expects the Model Y Standard to reach 250,000 units per year in the U.S. by 2026. Production costs are about 20% lower than the refreshed Model Y. Both cars will be built on current production lines using a mix of existing and next-generation parts.

Tesla can now reach more drivers in the $30,000–$40,000 price range, where most Americans shop for cars.

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