Entry-level Model Y and Model 3 trims priced up to USD 5,500 lower; fewer comfort features but core tech and performance retained.
09 Oct 2025 | 2239 Views | By Akbar Merchant
Tesla has unveiled new entry level “Standard” variants of the Model Y and Model 3, as part of a broader effort to revitalise sales and expand its customer base. The move comes alongside a trim hierarchy reshuffle, with the previous Long Range models now renamed ‘Premium’, while Performance variants continues ...
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Tesla has unveiled new entry level “Standard” variants of the Model Y and Model 3, as part of a broader effort to revitalise sales and expand its customer base. The move comes alongside a trim hierarchy reshuffle, with the previous Long Range models now renamed ‘Premium’, while Performance variants continues to sit at the top of the range. These entry-level variants will go on sale in the North American market initially with international launches, including the UK, expected to follow.
The lower entry prices have been achieved without compromising the cars’ core electric performance and digital-first user experience, according to Tesla
Tesla Model Y Standard: What all is different?
Starting at USD 39,990 (around Rs 35.49 lakh) in North America, the new Tesla Model Y Standard is USD 5,500 (approx. Rs 4.88 lakh) cheaper than the regular model. To reach this price point, Tesla has trimmed several comfort and design elements while maintaining the SUV’s trademark driving dynamics.
Externally, the light bars have been removed, 18-inch wheels are now standard, and buyers can choose only from white, black, and grey paint options. The panoramic glass roof has been replaced by a sealed headliner with added insulation for improved cabin quietness.
Inside, some convenience features have been dropped. The side mirrors and steering now require manual adjustment, rear seats lose heating, and the second-row screen has been deleted. The audio system is down to seven speakers, and the centre console takes inspiration from the Cybertruck’s minimalist theme.
Under the skin, the Model Y Standard gets a 300 hp motor with a smaller 69.5 kWh battery pack (down from 75 kWh in the Premium). Range stands at a still-respectable 517 km (EPA), compared to 622 km on the higher variant.
Tesla Model 3 Standard: What all is different?
The new Model 3 Standard starts at USD 36,990 (around Rs 32.82 lakh), making it Tesla’s most affordable sedan to date. Like its SUV sibling, it undercuts the Premium RWD by roughly USD 5,000.
Visual changes are minimal — the car gets 18-inch wheels as standard (19-inch optional) and a limited paint palette with grey offered at no extra cost. The panoramic glass roof remains, though interior materials are now more cost-effective, with textile seat inserts replacing full leatherette. Steering adjustment is manual, and the rear touchscreen has been removed.
Powering the Model 3 Standard is a 286 hp single rear motor paired with the same 69.5 kWh battery as the Model Y Standard. It delivers up to 517 km of range and does 0–100 kph in 5.8 seconds — marginally slower than the Premium RWD, but still brisk for an entry-level EV.
Core Tesla experience remains intact
Despite the cost-cutting, Tesla has kept the core digital and safety suite unchanged. Both Model Y and Model 3 Standard variants retain the 15.4-inch central touchscreen, Autopilot, Sentry Mode, Dog Mode, and smartphone key access, ensuring the essential Tesla ownership experience remains intact.
A strategic move amid market pressure
The launch of these more affordable variants comes as Tesla navigates a challenging period, with global sales down 13 percent and revenue dropping 12 percent between April and July. With Chinese EV makers and established global brands intensifying competition, Tesla’s focus has shifted to value-driven variants to sustain growth and market share. CEO Elon Musk recently acknowledged the company could face “a few rough quarters,” underscoring the importance of this pricing rethink in restoring momentum. By bringing the Model Y and Model 3 closer to true mass-market EV territory, Tesla hopes to broaden its reach — offering electric mobility to a wider audience without sacrificing its hallmark innovation and performance.
Tesla in India: How is it doing?
After a series of delays, Tesla finally made its India entry in July this year with the Model Y with prices starting from Rs 59.89 lakh (ex-showroom). The Tesla Model Y is available in two variants – Standard and Long Range in India and deliveries have already commenced. The brand has gathered more than 600 units in India and has delivered around 60 units in the month of September.