Model 3 and Y became cheaper but lost their premium: what has changed in the new versions of Tesla
8 October 18:31
The American automaker Tesla has released new, cheaper versions of its most popular electric vehicles – the Model 3 sedan and the Model Y crossover. This was reported by "Komersant Ukrainian" with reference to the WSJ.
The company’s goal is to remain competitive after the end of government tax incentives for electric cars in the United States. However, despite the price reduction, the new models remain unaffordable for most buyers.
Tax incentives expire, prices fall slightly
On September 30, federal tax incentives for Tesla electric cars, which allowed buyers to save up to $7.5 thousand when buying a new car, expired in the United States. In response, Elon Musk’s company presented budget versions, reducing the cost of basic models by several thousand dollars.
Tesla Model 3 Standard now costs $36,990, which is $5,500 less than the previous version.
Tesla Model Y Standard received a price tag of $39,990: the price has decreased by $5,000.
At the same time, even after the price reduction, the prices were not low enough to compensate for the loss of the federal discount. Thus, buyers will actually pay the same price as before – until the tax incentives expire.
Simplified equipment: no autopilot and premium options
The budget Model 3 and Model Y have undergone significant changes in their equipment. The manufacturer has simplified technical and design equipment to reduce production costs.
In particular, the standard versions do not include
- autosteer’s proprietary autopilot system
- seat heating;
- touch screen for rear passengers;
- adaptive headlights;
- some of the interior decorative elements that were previously included as standard.
The interior of the new models has been fitted with fabric instead of eco-leather, which also reduces production costs but worsens visual perception and comfort.
Read also: Tesla breaks stereotypes: a new taxi without a steering wheel, without pedals, without a driver
Specifications: shorter range and the same battery
Both budget versions are equipped with a 69 kWh battery. According to official data, the range of the Tesla Model 3 Standard and Tesla Model Y Standard is 516 km on the WLTP cycle.
However, the Model Y has a 10% shorter range than the premium modification, which is explained by the greater weight of the crossover. The company notes that this does not affect the dynamics or charging speed.
Market reaction: an attempt to maintain demand after the reduction of incentives
Analysts believe that the release of budget versions is an attempt by Tesla to mitigate the effects of the loss of government support. According to US dealers, Tesla’s share of the US electric car market began to decline after competitors from China and South Korea emerged, offering models with lower prices and more options.
Some experts emphasize that even Tesla’s updated pricing policy does not make the company’s cars “affordable” in the full sense of the word. After the abolition of tax incentives, Tesla is actually trying to keep demand in the mid-range segment without significantly reducing production costs.
It is worth noting that Elon Musk’s company continues to revise its pricing strategy to maintain its position in the key markets of the US and Europe. It is expected that in 2026 Tesla will introduce an updated platform for compact electric cars, which will significantly reduce the cost and possibly return the company to the status of a leader in the mass electric vehicle segment.
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Despite the current difficulties, Tesla remains one of the most profitable automakers in the world, and demand for the Model 3 and Model Y remains consistently high. However, market trends show that: tesla’s “affordable” electric car is still more of a marketing ploy than a real solution.
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