Tesla's affordable Model Y and 3 debut, pricing underwhelms
Tesla trims features for cheaper Model Y and 3, but prices disappoint
Tesla's affordable Model Y and 3 debut, pricing underwhelms
Tesla unveils lower-cost Model Y and Model 3 with decontented features and 516 km range, priced at $39,990 and $36,990. Analysts question value and timing.
2025-10-08T10:31:09+03:00
2025-10-08T10:31:09+03:00
2025-10-08T10:31:09+03:00
Tesla has unveiled new versions of the Model Y and Model 3 pitched as affordable electric cars. But the launch prices — $39,990 for the crossover and $36,990 for the sedan — left investors and analysts underwhelmed, many of whom had expected cars under $30,000.The Standard trims drop several premium features: the Autosteer function, heated rear seats, and the Model Y’s LED light strip are gone. Leather seats give way to cloth, and the side mirrors are now adjusted manually.Even so, the driving range remains at 516 km, and orders are already open with deliveries slated for the winter of 2025–2026. That long runway hints these variants aim more to steady demand than to deliver an instant bargain.Experts note this is Tesla’s attempt to arrest declining sales and compete with low-cost Chinese EVs, as well as upcoming models such as the Chevrolet Equinox, Hyundai Ioniq 5, and Kia EV4.Despite Elon Musk’s statements about affordability, the new Teslas are only marginally cheaper than the previous versions. The cost cuts feel more like visible decontenting than smart simplification, a trade-off that could blunt showroom appeal even as the spec sheet still shows a solid range.One analyst suggested the strategy resembled Tesla taking off a Steve Jobs turtleneck and pulling on a Walmart hoodie, an attempt to be a luxury brand and a mass-market producer at the same time.
Tesla, Model Y, Model 3, affordable EVs, pricing underwhelms, decontenting, 516 km range, Autosteer removed, heated rear seats, deliveries 2025-2026, Chinese EV rivals, Equinox, Ioniq 5, Kia EV4
2025
Michael Powers
news
Tesla trims features for cheaper Model Y and 3, but prices disappoint
Tesla unveils lower-cost Model Y and Model 3 with decontented features and 516 km range, priced at $39,990 and $36,990. Analysts question value and timing.
Michael Powers, Editor
Tesla has unveiled new versions of the Model Y and Model 3 pitched as affordable electric cars. But the launch prices — $39,990 for the crossover and $36,990 for the sedan — left investors and analysts underwhelmed, many of whom had expected cars under $30,000.
The Standard trims drop several premium features: the Autosteer function, heated rear seats, and the Model Y’s LED light strip are gone. Leather seats give way to cloth, and the side mirrors are now adjusted manually.
Even so, the driving range remains at 516 km, and orders are already open with deliveries slated for the winter of 2025–2026. That long runway hints these variants aim more to steady demand than to deliver an instant bargain.
Experts note this is Tesla’s attempt to arrest declining sales and compete with low-cost Chinese EVs, as well as upcoming models such as the Chevrolet Equinox, Hyundai Ioniq 5, and Kia EV4.
Despite Elon Musk’s statements about affordability, the new Teslas are only marginally cheaper than the previous versions. The cost cuts feel more like visible decontenting than smart simplification, a trade-off that could blunt showroom appeal even as the spec sheet still shows a solid range.
One analyst suggested the strategy resembled Tesla taking off a Steve Jobs turtleneck and pulling on a Walmart hoodie, an attempt to be a luxury brand and a mass-market producer at the same time.
