Tesla announces more affordable electric cars: How much do they cost?

Tesla has finally done what many have done Electric car Shoppers have been asking for it, as they unveiled entry-level versions of Updated Model Y and Model 3 this week. As many expected, there’s no all-new car, but rather more streamlined configurations of existing models that lower the entry price point – making it easier for more buyers to get into Tesla ownership.

This is long overdue. As someone who has spent a lot of time behind the wheel of both cars, I see this as a move that could significantly increase Tesla ownership. Although electric cars were attractive, price remained a sticking point for many. The idea is simple: make the same design and driving experience accessible to more people by cutting out extras that most owners rarely use – and in my view, that’s a smart move.

This comes at a time when electric car shoppers are looking for cheaper options. According to June figures from Kelly Blue Bookthe average transaction price for new vehicles in the United States is $48,644. This is 2% lower than the market peak in December 2023, but still about 13% higher than prices in June 2021.

What you get from Tesla’s affordable electric cars

The Model Y Standard Rear-Wheel Drive starts at $39,990 and offers an EPA-estimated range of 321 miles, a 0-60 mph time of 6.8 seconds and a charging rate of up to 225 kilowatts. It runs on a 69 kWh battery and produces about 300 horsepower. This version uses less battery module than higher-end models and is 5% more efficient than the Model Y RWD.

Inside, it features an open-concept Cybertruck-like center console, fabric door and dashboard trim. There are 10-way driver seat and 4-way passenger seat controls that are now managed via the touchscreen without physical buttons.

The Tesla includes a 7-speaker audio system, automatic high beams and dual-tone cloth and vegan leather seats, but most cabin adjustments are done manually. This includes the seats, steering wheel and mirrors. The front seats are heated while the rear seats are not.

The rear passenger display has been removed, but the car still has a portable charger. At the top, the glass roof is now closed internally with a fabric headliner for better insulation, and the mirrors are now manually foldable. Additionally, there is no HEPA filter, only a particulate and odor filter.

The Model Y Standard rides on 18-inch wheels as standard, with 19-inch wheels available as an additional option, and offers 75 cubic feet of cargo space. Towing capacity is 3,500 pounds, and curb weight is 4,061 pounds. It supports Tesla’s well-established Supercharging network and can add up to 160 miles in about 15 minutes. This edition is available in three colors: Subtle Grey, Multilayer Pearl White, and Diamond Black.

Meanwhile, the standard rear-wheel-drive Model 3 now starts at $36,990 and shares many of the same hardware and software features. It has the same 69-kilowatt-hour battery, offers an EPA-estimated 321 miles of range and accelerates from 0 to 60 mph in 5.8 seconds thanks to 286 horsepower. Tesla has added a front-facing camera with a washer like the Model Y, uses leather and vegan fabric seats, and has seat adjustments controlled by touch rather than physical switches. There are manual folding second-row seats, a manually adjustable steering wheel and mirrors, and no heated or ventilated rear seats.

It retains the panoramic glass roof but has acoustic front door glass and tempered rear glass. The rear screen has been removed, and the center console now features uncovered cup holders. It also features a 7-speaker audio setup and the same 15.4-inch touchscreen that dominates the interior. Charging speeds are identical at up to 225 kilowatts, and Tesla claims up to 170 miles of range can be added in 15 minutes. It weighs 3,759 pounds and has 24 cubic feet of cargo space. This trim offers the same three paint options as the more expensive options.

Both cars come with manual vents for the second row, ditch the LED strips in favor of ambient lighting in the footwells and door pockets only, and come with standard LED headlights with automatically adaptive high beams (no matrix LEDs). Interestingly, it also deletes Autosteer, although it comes with traffic-aware cruise control as standard. Full self-driving Optional and available for $8,000 or via a $99 monthly subscription. Tesla offers the same four trim levels for each model: Standard, Premium RWD, Premium AWD, and Performance.

I think this new approach makes a lot of sense for Tesla. Rather than going after the luxury side of the market, this returns the focus to what made the brand so popular originally: offering long-range, fast-charging, affordable electric vehicles that still feel cutting-edge. By cutting back on extras, the company has created an option that could appeal to first-time EV buyers who may be looking for cheaper competitors. In my experience, Tesla’s biggest strengths have always been its software and driving dynamics, which remain intact here. For anyone on the fence about switching to an electric vehicle, these new versions of the Model 3 and Model Y could be the most compelling reason yet.

Pricing for the Model Y Standard starts at $39,990, while the Model 3 Standard follows at $36,990. Global pricing has yet to be announced, but is expected to also undercut the current Long Range model. Right now, this is the easiest way to buy a Tesla.