EV maker Tesla (TSLA) has finally introduced the cheaper version of its popular Model Y, called the Model Y Standard, which is already available to order on its U.S. website. Indeed, the new model starts at $39,990, comes with rear-wheel drive, and offers an estimated 321 miles of range on standard 18-inch wheels. To cut costs, the Standard version leaves out features like front and rear light bars and limits exterior colors to stealth grey, white, and diamond black. When it comes to the interior, black is the only option with cloth seats.
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According to earlier reports, Tesla also reduced other features to lower expenses, such as using smaller infotainment screens, removing the second-row display, and scaling back on ambient lighting and sound insulation. Interestingly, the timing of the release matches what CEO Elon Musk said during Q2 earnings: that a cheaper Model Y would arrive after the U.S. federal EV tax credit expired on September 30. Tesla added that the first builds of this version began in June, with larger-scale production planned for the second half of 2025.
The firm hopes to drive sales after recent slowdowns, though Q3 deliveries already surged to a record 497,099 vehicles. That result beat Bloomberg’s forecast of 439,800 and last year’s 462,890, as many buyers rushed to purchase before the tax credit ended. Nevertheless, investors will get a clearer picture when Tesla releases its full Q3 results on October 22 and holds its annual shareholder meeting on November 6.
New Model 3 Standard
Tesla also revealed its new Model 3 Standard sedan, which starts at $36,990. Like the Model Y, it delivers an estimated 321 miles of range but drops several features found in higher-end versions, including Autopilot, second-row screens, and even basic comforts like powered adjustments for the steering wheel and mirrors. While the Standard Model 3 lowers the entry point, it still doesn’t hit the long-promised $35,000 mark, let alone the $25,000 Tesla once teased, thereby making the price cut more modest than many buyers had hoped.
What Is the Prediction for Tesla Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 13 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $350.58 per share implies 20.6% downside risk.
