Tesla Launches Cheaper Model 3 and Model Y in the U.S.: Here’s Pricing

Image: Tesla

Tesla has officially unveiled two new entry-level electric vehicles in the U.S. — the Model Y Standard and Model 3 Standard— marking the debut of the long-rumoured cheaper Model Y variant and a surprise lower-cost Model 3. Both models come in a Rear-Wheel Drive (RWD) configuration. Here’s the pricing:

  • Model Y Standard RWD: $39,990 USD
  • Model 3 Standard RWD: $36,990 USD

The new “Standard” trims are now the most affordable versions of the company’s two best-selling vehicles. Deliveries are set to begin in the U.S. in the coming weeks. For now, there’s no word on when or if these models will launch in Canada or other markets.

The new Standard trims represent Tesla’s push to make its lineup more accessible in the absence of the $7,500 federal EV tax credit, though they come with a few notable cost-cutting measures. Both vehicles feature manual-adjust steering wheels, manual second-row seats, and do not include ventilated or heated rear seats, in addition to omitting the rear passenger touch screen. They also lack Autosteer — Tesla’s basic lane-keeping feature — but still include Traffic-Aware Cruise Control. Full Self-Driving (Supervised) remains available as a paid upgrade for $8,000 or $99/month.

Image: Tesla

The Model Y Standard RWD delivers up to 321 miles of range, 0–60 mph in 6.8 seconds, and a 69 kWh battery with one fewer module than the Premium (yes, Premium — more on that later) trims. It also features a redesigned front and rear fascia, an open-concept center console inspired by the Cybertruck, and new 18-inch wheels designed for maximum efficiency.

Image: Tesla

Meanwhile, the Model 3 Standard RWD offers the same 321-mile range, a quicker 0–60 mph time of 5.8 seconds, and a curb weight of just 3,759 lbs. It shares many of the same interior updates and simplifications as the Model Y Standard. Both vehicles include Tesla’s latest HW4 hardware and maintain the company’s high safety standards.

Image: Tesla

Alongside the new trims, Tesla is renaming its “Long Range” variants to “Premium,” reshuffling its U.S. lineup as follows:

Model Y

  • Model Y Standard RWD — $39,990
  • Model Y Premium RWD — $44,990
  • Model Y Premium AWD — $48,990
  • Model Y Performance — $57,490

Model 3

  • Model 3 Standard RWD — $36,990
  • Model 3 Premium RWD — $42,490
  • Model 3 Premium AWD — $47,490
  • Model 3 Performance — $54,990

The announcement follows Tesla’s cryptic teaser over the weekend, hinting at a mystery reveal. The lower-cost Model Y had been expected after months of sightings and software hints — but the entry-level Model 3 was pretty unexpected.

YouTube video

A previous leak suggested Tesla also had an All-Wheel Drive (AWD) version of the cheaper Model Y in the works. It remains to be seen if the automaker will follow up with a Model Y Standard AWD (and potentially even a Model 3 Standard AWD?) in the future.

Will you be ordering the new, cheaper Model 3 or Model Y? Let us know in the comments below!