Tesla launches Model Y Standard and Model 3 Standard with lower prices

The wait is over: as we had been predicting in recent weeks, Tesla has just unveiled a simpler, less well-equipped and more affordable version of the Model Y, called Standard.

However, the American brand caught everyone off guard by also introducing a new entry-level version of the Model 3. As a result, that becomes the cheapest Tesla you can buy right now.

Tesla used the announcement to reshuffle the line-up structure for both models. Where the base versions are now labelled Standard, the Long Range variants adopt the Premium name.

At the top of the range, nothing has changed, meaning the more powerful (and sportier) versions continue to carry the Performance badge.

As expected, though, attention is firmly on the new access versions, which arrive at lower prices. For the Model 3, pricing now starts at 36 990 dollars (5500 dollars less than before). The Model Y now begins at 39 990 dollars (5000 dollars less than before).

Don’t be surprised that we’re quoting prices in dollars. Contrary to what had been anticipated, everything suggests these two versions (and this new range organisation) will be exclusive to the North American market.

That is despite reports - published by Automobilwoche - indicating that this cheaper Model Y version will be produced at Tesla’s factory in Grünheide, Germany.

What changed on the Model Y?

We’ll start with the Tesla Model Y. To bring down production costs (and therefore the final price), Tesla took a fairly straightforward approach: it looked at its crossover and worked out which solutions and materials could be removed or simplified.

The outcome is a crossover with a completely new front end, without the full-width LED light bar, and with headlamps similar to those fitted to the updated Model 3. At the other end, the light strip added in the model’s latest update has also been removed.

On this new Standard version, the wheels have shrunk too, down to an 18″ size and fitted with new black plastic covers. That said, 19″ wheels are available as an option.

The most noticeable changes, however, are inside, where the large panoramic glass roof has been dropped. In fact, it is still there, but it is now hidden by the headlining. Apparently, Tesla concluded it was cheaper to do this than to design a new roof for the model.

And there’s more. Electric steering wheel adjustment has gone, as has the 8″ touchscreen for second-row passengers. In addition, the seats are now cloth and are no longer ventilated or electrically adjustable.

The HEPA filtration system - a familiar feature across the brand’s models - has also been removed, for a reason that is as simple as it is unsurprising: less equipment means lower costs.

And the Tesla Model 3?

The new Model 3 Standard becomes the least expensive Tesla on sale in the United States of America. And unlike the Model Y, the exterior changes are much harder to spot. The clearest difference is the wheel design, along with the three simple body colours (as with the Model Y Standard): grey, white and black.

Inside, the updates are almost the same as those found in the Model Y. The Model 3 loses the panoramic roof, the synthetic leather seats, the rear screen and the electrically adjustable steering wheel.

What both models share is the fact they use a rear-mounted electric motor paired with a 69 kWh battery pack, delivering a range of up to 516 kilometres (EPA cycle) in both models.

When all is said and done…

There’s no question Tesla has made significant cuts to its two main models, even if that comes at the cost of a notable reduction in equipment and the materials on offer.

Even so, these cars remain a long way from the 30 thousand euro Tesla that many people are still waiting for the American brand to launch.

On top of that - and against what everyone expected - all signs suggest these two models will not end up being sold in Europe. That would certainly help to boost the brand’s sales on the Old Continent, especially with the Tesla Model Y, which holds the title of the world’s best-selling car over the past two years and is even built on European soil.