Tesla launches cheaper versions of Model Y and Model 3, which are immediately available for orders - here's how much it will cost

Tesla launched new, more budget-friendly versions of its best-selling model Y SUV and Model 3 sedan on Tuesday, priced at $ 39,990 and $ 36,990, respectively, a step aimed at combating falling sales and shrinking the market share, Reuters reported. These standard versions have a range of 516 km and less acceleration than the premium with higher levels. According to Tesla’s website, it is now available for order, and deliveries are expected to start in many places between December 2025 and January 2026. The standard models do not have AutoSteer, Tesla’s driver aid system and rear passengers touch screens. Tesla also stopped the LED bulb in the more affordable model Y. Both versions contain textile seats, with vegan leather offered for the Model 3, and manually adjustable side view mirrors. CEO Elon Musk has long promised mass market vehicles, but according to Reuters, he has reportedly canceled plans for a new EV of $ 25,000. Instead, he chose to develop affordable versions derived from the current Tesla models, which raise concerns among investors and analysts that these cheaper cars could affect the sales of existing vehicles, it says. The impact of the US EV tax credits at the end of last year said Musk said the vehicle would cost less than the ‘key threshold’ of $ 30,000, taking into account the US EV tax credits. EV prices in the US rose by $ 7,500 at the end of last month when credit expired. This boost has helped push quarterly sales to a record high, but most expect sales to delay for the rest of the year unless an affordable car is available, the report states. Musk said in July during Tesla’s earnings call in the second quarter said: ‘The desire to buy the car is very high. (It’s) just (it) people don’t have enough money in the bank account to buy it. ‘ He added: “The more affordable we can make the car, the better.” (With input from agencies.)