Whats happened? The Elon Musk-owned EV manufacturer Tesla has launched two affordable EVs in the United States. The new Model 3 sedan and the Model Y SUV are $5,000 cheaper than their standard versions, but they miss out on some key features.

The new Model 3 Standard (RWD) starts at $36,990, while the Model Y Standard (RWD) starts at $39,990. Both the EVs offer an EPA-claimed range of up to 321 miles (less than the corresponding Premium models). Other changes made to cut costs include support for slower charging, smaller wheels, manually-adjustable steering wheel and side mirrors, textile seating, inferior lighting, and slower acceleration. The Model 3 hits 60 mph in 5.8 seconds (0.9 seconds slower), while the Model Y hits the mark in 6.8 seconds (1.4 seconds slower). While the Autosteer feature is missing from both models, they can drive themselves with your active supervision, mentions Tesla in an X post. Model Y Standard Model 3 Standard are here pic.twitter.com/e2kXwAaQ0O

Tesla (@Tesla) October 7, 2025 Why is it important? For years, Teslas CEO has been promoting the idea of affordable EVs costing $25,000, but the company scrapped that project in 2024, in favor of working on the robotaxi platform and the artificial intelligence division.

The $7,500 US federal EV tax credit is no longer in place, which makes the arrival of the affordable Model 3 and Model Y all the more important. Tesla is currently experiencing a slowdown in sales, primarily due to the rapid growth of competition in key markets such as China and Europe. Hence, the Recommended Videos Why should I care? Although the revised pricing doesnt offset the effective loss due to the removal of the tax credit, it still makes Teslas most affordable EVs even cheaper, making them an accessible entry point for buyers whove eyed a Tesla for the longest time.

OK, whats next? Potential buyers can order the new Standard trims, with deliveries expected to begin toward the end of the year. Meanwhile, the company is expected to refine its lineup, primarily with competitive pricing to take the fight to its competitors.