OK, OK… ok. Tesla’s attempt to fend off fierce competition from Chinese EV brands hasn’t exactly moved forward—or backward—but instead took a meekish step down to make the Model 3 and Model Y more competitively priced. In America, Tesla faces very little competition, so a sales surge is expected. The real test will come when the new, cheaper entry-level variants are launched in Europe and China.

The new entry-level Standard versions replace the previous base Long Range RWD and RWD Premium trims. The Model 3 Standard starts at $36,990 (a $5,500 drop), while the Model Y Standard begins at $39,990 (a $5,000 reduction). Both feature a single-motor, rear-wheel-drive setup and a smaller 69 kWh battery, resulting in lower range and slower acceleration compared to their Premium counterparts.

To reach these lower prices, Tesla has made extensive cost-cutting changes. Many comfort and convenience features are gone, including lane assist, front seat ventilation, rear seat heating, the rear touchscreen, HEPA filter, and Autosteer.

Inside, textile seats replace vegan leather, and the centre console adopts a simpler, more utilitarian design. The Model Y Standard hides its glass roof beneath a fabric headliner—an odd move given that the glass remains in place underneath. Exteriors have been simplified too, with smaller 18-inch wheels (19-inch optional), limited colour choices, and revised lighting details.

The audio system now uses 7 speakers instead of 15, the side mirrors fold manually, and even seat and steering wheel adjustments are no longer powered. Both cars now use passive shock absorbers instead of frequency-dependent units.

The Model 3 Standard mirrors these changes but keeps its visible glass roof. Performance remains modest: 0–60 mph in 5.8 seconds for the Model 3 and 6.8 seconds for the Model Y, both topping out at 125 mph.

Both the new Model 3 and Model Y Standard versions use a single-motor, rear-wheel-drive setup paired with a smaller 69 kWh battery pack that has one fewer module than before. The Model Y Standard delivers an EPA-estimated range of 321 miles, down from 357 miles in the RWD Premium version.

For 2026, Tesla has reintroduced traditional turn signal stalks and added a front camera, offering small nods to practicality amid widespread de-contenting.