New 'Standard' Tesla cars start from $36,990

Tesla has launched new 'Standard' lower-priced versions of its Model 3 sedan and Model Y SUV, with starting prices of $36,990 and $39,990, respectively. 

The move is part of the company's strategy to appeal to more budget-conscious consumers as it faces intensifying competition in the electric vehicle market, states a recent report by Reuters on the matter.

The new models achieve lower prices by removing certain features. Both vehicles come with manually adjusted mirrors, textile seats, and lack Autosteer and Tesla's driver assistance system. The Model Y also removes its LED lightbar. Despite these changes, Tesla states both models maintain a driving range of 321 miles, despite less acceleration than the 'Premium' versions.

Photo: Tesla Model 3 Standard, Tesla Motors/Handout via Reuters

The launch comes as Tesla faces declining sales of its current lineup and increased competition from cheaper electric vehicles, particularly from Chinese manufacturers, adds the Reuters report. Some analysts expressed disappointment that the prices weren't lower, noting they remain above the $30,000 threshold that CEO Elon Musk had previously identified as key for mass adoption.

Deliveries of the new Standard models are scheduled to begin between December 2025 and January 2026 for many locations, as per the official Tesla website. The vehicles will compete with upcoming electric models from Chevrolet, Hyundai, and Kia in the increasingly crowded worldwide EV market.