Tesla (TSLA) eventually unveiled a stripped-down version of its Model Y, named the standard, and in a surprise move also announced the Model 3 standard.
The two cars are now available for order on Tesla's US website. The Model Y standard is rear-wheel drive, starts at $39,990 and has an estimated range of 321 miles with standard 18-inch wheels. The standard Model 3 is even cheaper, at $36,990, and has the same range. While the Model Y standard is available for November/December delivery, the standard Model 3 standard will arrive a little later, with a December/January delivery range.
In terms of appearance, the standard finish omits the front and rear light bars on the Model Y and comes in just three colors: stealth gray, white, and diamond black. The only available interior color is black.
Tesla shares gained more than 5% on Monday after the EV maker posted GIFs on Sunday of a spinning company logo with the date “10/7” and what appeared to be car headlights shining through smoke. Shares retreated nearly 4% on Tuesday after Tesla's website update.
Inside, both standard trims have the same 15.4-inch infotainment screen as the more expensive models. However, there is no second row screen, the ambient lighting has been removed and cheaper cloth seats insert vegan leather, according to Tesla's website. Interestingly, Tesla has removed the AM/FM radio tuners from the standard trim, and the standard models can only perform “traffic aware cruise control,” Tesla's version of Adaptive Cruise Control, and cannot perform “AutoSteer” features such as Autopilot and Full Self Dreiving (FSD).
It's also likely that Tesla has eradicated the cost of its batteries and electric motors to make the vehicles cheaper.
The standard versions of the Model Y and Model 3 come after the federal EV tax credit expires in the US on September 30. CEO Elon Musk said in the company's earnings call that the cheaper Model Y would come out after the tax credit expires.
Read more: How to avoid sticker shock on Tesla car insurance
Tesla said after Q2 earnings that the first builds of a more affordable model took place in June, with volume production planned for the second half of 2025.
Tesla's release of these cheaper vehicles is expected to help grow volume for the automaker, which has seen sales decline in recent quarters, although Q3 sales have increased as buyers purchased EVs ahead of the tax credit expiration date.
Last quarter, Tesla CFO Vaibhav Taneja said he expected a drop in sales in Q3 due to the tax credit expiration, and the numbers backing up that claim.
