Tesla Unveils Affordable Model Y Standard and Model 3 Standard: Entry-Level EVs for a Wider Audience

These new rear-wheel-drive variants represent the brand's most accessible offerings to date, priced below $40,000 in the United States. B

Model 3 Standard

The Model 3 Standard, launched at $36,990 (approx. ₹32.82 lakh), builds on the popular Model 3’s foundation, delivering solid efficiency and everyday usability at a reduced entry price. It features a single rear-mounted motor paired with a 69.5 kWh battery, enabling an EPA-estimated range of 517 kilometres on 18-inch wheels or 488 kilometres on optional 19-inch wheels. Acceleration from 0 to 100 km/h takes 5.8 seconds, with a top speed of 201 km/h, powered by 286 bhp.

Key interior elements include textile seat inserts, manual adjustments for the steering column and side mirrors, and manual air vents in place of a rear touchscreen. 

The panoramic glass roof remains a highlight, complemented by a 15.4-inch central infotainment screen, over-the-air updates, and standard safety systems such as automatic emergency braking and lane departure avoidance. It gets a seven-speaker setup without AM or FM radio, while ambient lighting and ventilated front seats are missing, too.

This variant undercuts the previous rear-wheel-drive Model 3 by $5,000, positioning it as an attractive option for urban commuters seeking Tesla's signature instant torque and software ecosystem.

Model Y Standard

The Model Y Standard, launched at $39,990 (approx. ₹35.49 lakh), adapts the crossover formula for affordability without sacrificing family-friendly space. It shares the 69.5 kWh battery and rear-wheel-drive setup, matching the Model 3's range of 517 kilometres on 18-inch wheels. Performance includes 300 hp from its single motor, hitting 0 to 100 km/h in 6.8 seconds and a top speed of 201 km/h.

Exterior updates feature standard 18-inch wheels, sleeker headlamps without light bars, and colour options limited to Stealth Grey at no extra cost, with Pearl White or Solid Black for an additional $1,500. 

Inside, fabric seats replace vegan leather, rear seats lack heating and require manual folding, and the panoramic glass roof is sealed with a headliner for added insulation. Other simplifications include a downgraded seven-speaker audio system, the absence of a rear touchscreen, and passive dampers instead of adaptive ones on the Model Y.

Priced $5,500 lower than the prior base Model Y, this model targets growing households entering the EV space.

Tesla's decision to roll out these Standard models stems from a need to revitalise demand after a 13% dip in global sales and a 12% revenue decline in the April to July 2025 quarter. With the expiration of a key U.S. federal EV tax credit, effective pricing had climbed, deterring potential buyers. 

By reducing costs through feature cuts like non-ventilated seats and manual controls, Tesla targets mass-market accessibility without pursuing a sub-$25,000 vehicle that was previously shelved in favour of autonomous projects like the Cybercab.This move helps Tesla compete against established global automakers like BYD, Mercedes, Audi, Hyundai, Volkswagen, and others.

India Launch on the Cards?

Tesla's entry into India has been gradual, with the Model Y launching in July 2025 at ₹59.89 lakh for the rear-wheel-drive variant, followed by over 600 bookings. However, steep import duties of 100%, plus 5% GST, have kept prices elevated, limiting appeal in a market dominated by lower-cost local EVs from brands like Tata and Mahindra. 

The Standard models could address this by offering better value, potentially arriving in late 2026 alongside a broader lineup.

No official confirmation exists for an India launch of these variants, but industry observers see strong potential given the models' competitive U.S. pricing and Tesla's ongoing factory discussions in the country. 

Predicted ex-showroom prices, adjusted for duties, hover around ₹55 lakh to ₹60 lakh for the Model 3 Standard and ₹60 lakh to ₹65 lakh for the Model Y Standard. These estimates align with broader expectations for the Model 3 at ₹55 lakh to ₹60 lakh, factoring in a roughly 70 to 80% markup from U.S. base figures.