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UPDATE: Tesla revealed Model 3 and Model Y "Standard" trims today, both of which are now available to configure on the company's website. But despite rumors that Tesla might finally release the $25,000 model that CEO Elon Musk has been teasing since 2020, the new trims are well above that price, and sacrifice a few features.
The Model 3 Standard costs $36,990, or $5,500 less than the $42,490 Premium trim, the next tier above. The Model Y standard is $5,000 cheaper, at $39,990 compared to $44,990 for the Premium trim above it.
That's shy of the $7,500 savings from the now-dead federal EV tax credit, which both models qualified for, and they come with slightly less range, slower acceleration, slower charging, no panoramic roof, and fewer audio speakers. Tesla also nixed AM/FM radio on these trims, downgraded the air filter, and removed the Autosteer driving assistance tech.
The Tesla website has an easy-to-read model comparison tool for both the Model 3 and Model Y, which lays out what each trim comes with and what the Standard versions lack. It's clear the company was looking for ways to shave off a few dollars here and there, mostly cutting features drivers can live without. But it will make for a more sparse and simple driving experience.
Original Story (10/6):
Tesla has been teasing an affordable electric car since 2020, and now, after years of flip-flopping—kill the project, revive it, repeat—the company may finally debut it at an Oct. 7 launch event.
A teaser video posted to X shows only a pair of headlights, which investors and analysts expect to be a more affordable version of the Model Y. However, it remains to be seen exactly what the vehicle is and what trade-offs Tesla had to make to lower the price. Will it have an (even more) sparse interior than the Model Y, or perhaps a smaller battery?
The biggest question will be the price and whether the model is actually real. Here's a quick recap of the mixed messages Tesla has put out about this vehicle over the years:
- Sept. 2020 (ON): CEO Elon Musk teases a $25,000 EV at its Battery Day event.
- Jan. 2022 (OFF): Musk tells investors the company is no longer working on it because it has "enough on our plate."
- Dec. 2023 (ON): Musk says the company is "obviously" still working on the EV, set to be under $25,000.
- July 2024 (ON): Musk tells investors an affordable, entry-level EV will go into production in early 2025.
- Nov. 2024 (OFF): Musk reverses course again, confirming the company had ditched plans for the vehicle so it can focus on debuting a robotaxi prototype.
- April 2025 (OFF-ish): New reporting claims Tesla delayed plans for the vehicle again, and that it was considering a more affordable version of both the Model Y and Model 3.
It's safe to say that there are reasons to be skeptical about what we'll see tomorrow. There are a few options: a new entry-level Model Y, an entry-level Model 3, or entry-level versions of both.
But wait, what about the long-awaited Roadster? Tesla posted another teaser video on X, which appears to be a cooling fan. Fans speculate that it could finally be a new version of Tesla's first product, introduced in 2008, which was discontinued in 2012.
Since 2021, the company has promised to bring back the Roadster, but it has faced significant delays, Car & Driver reports. I'll spare you the bullet points for this one, but the narrative is similar to the affordable EV flip-flopping. In September, for example, Musk wrote on X, "The new Roadster is something special beyond a car."
It may be more feasible for the company to launch the Roadster, which could cost up to $250,000, rather than the affordable EV, given the high cost of batteries and the difficulty in creating a compelling, low-cost vehicle. Just ask Honda and GM, who scrapped plans to partner on a sub-$30,000 electric car since they couldn't make it work.
Tesla sales were tanking earlier this year, but it's now coming off a strong third quarter, with record vehicle sales and deliveries, likely fueled by shoppers trying to cash in on the $7,500 federal tax credit before its Sept. 30 expiration. To keep that momentum up, it would do well to launch a more affordable model, not the Roadster. The sports car would be yet another niche, collector vehicle à la the Cybertruck, which had strong initial sales that then leveled off.
A more affordable vehicle will also help make up for some of the $7,500 consumers lost from the tax credit, given that both the Model 3 and Model Y qualified for it.