Tesla unveils slightly cheaper “standard” versions of Model 3 and Model Y

Tesla spent more than a year announcing that “more affordable models” of its vehicles were on the way, and on Tuesday the company finally revealed them. The company now sells a simpler version of the Model 3 sedan and Model Y SUV, which start at $36,990 and $39,990, respectively.

The new versions, each dubbed “Standard,” have an estimated range of 321 miles on a full battery and come with fewer features than more premium rear- or all-wheel-drive variants.

The release of the cheaper models aims to help Tesla return to growth after seeing sales decline in 2024. Prices aren’t as low as some might have hoped, especially since CEO Elon Musk once teased the idea of ​​a $25,000 Tesla — before ultimately killing that project.

The new Model 3 doesn’t even drop below the $35,000 price threshold Tesla promoted before the car’s launch in 2016. That sticker price, which helped put Tesla on the map, was never really offered, except for a few months as an off-menu ordering option.

This story is developing…