Tesla has rolled out more affordable versions of its popular Model Y SUV and Model 3 sedan, hoping to attract new buyers as competition in the electric vehicle (EV) market heats up. The new variants, priced
at $39,990 (about Rs 35 lakh) for the Model Y and $36,990 (around Rs 32 lakh) for the Model 3, are now open for pre-orders on Tesla’s website.
Deliveries are expected to begin between December 2025 and January 2026, according to reports.
The new models reportedly come with slightly lower performance than the premium ones, offering a range of about 321 miles (516 km) on a full charge. However, they skip some premium features such as Tesla’s Autosteer system and rear-seat touchscreens. The Model Y’s LED lightbar is also missing in the new variant. Both cars include textile seats, with vegan leather available for the Model 3, and manually adjustable side mirrors.
A Push for Affordability
Tesla CEO Elon Musk has often spoken about creating mass-market electric vehicles. However, Reuters reported that Musk had dropped plans for an all-new $25,000 EV last year and instead chose to release lower-priced versions of existing models. Analysts believe this strategy may help boost sales but could also affect demand for Tesla’s higher-end cars.
Late last year, Musk said that Tesla’s goal was to make cars that fall below the $30,000 (Rs 26 lakh) threshold after tax credits, making them more affordable for a wider audience. However, the U.S. EV tax credit of $7,500 (Rs 6.6 lakh) expired at the end of September 2025, which had temporarily driven up sales. Without this subsidy, Tesla is relying on these cheaper versions to maintain its sales momentum.
As per the Economic Times, Musk explained during Tesla’s Q2 2025 earnings call, “The desire to buy the car is very high. (It’s) just (that) people don’t have enough money in the bank account to buy it.” He added, “So the more affordable we can make the car, the better.”
Comparing Standard and Premium Models
The new Model 3 Standard and Model Y Standard differ mainly in features and range. The premium Model 3 can reportedly travel 363 miles on a full charge, while the standard version covers 321 miles.
Similarly, the premium Model Y offers 357 miles, compared to the standard’s 321 miles. Neither of the standard models includes Tesla’s self-driving package, which costs an extra $8,000 (about Rs 7 lakh).
According to Tesla’s website, the Model 3 Standard starts at $38,630 (approximately Rs 34 lakh including delivery fees) and can be financed for around $573 (around Rs 50,000) per month. The Model Y Standard starts at $41,630 (about Rs 36 lakh), with financing options beginning at $622 (around Rs 55,000) per month. Both require a $250 (about Rs 22,000) order fee, and Tesla is not offering leasing options for these models at the moment.
Market Response and Stock Impact
Tesla’s stock reportedly saw a slight dip following the launch announcement. By Thursday’s pre-market trading, the company’s shares were down 1.36 per cent, hovering around $432 per share.
Despite the small drop, analysts say that introducing cheaper models could help Tesla regain its footing in an increasingly crowded EV market.
