Tesla has introduced 'affordable' versions of the Model 3 and Model Y — prices start at $37,000 and $40,000 respectively
Tesla has unveiled new 'Standard' versions of its Model 3 and Model Y, aiming to attract more buyers with lower price points. These entry-level models scale back on premium features like panoramic roofs and advanced autonomous driving to achieve their accessible cost.
What's New with the Standard Trims?
While the core performance remains strong, Tesla made several adjustments to the features and amenities:
- Performance: Both models deliver a solid range of up to 520 km on a full charge, according to Tesla.
- Interior Comfort: The cabin still features a 15.4-inch central touchscreen with Grok support, heated front seats, and a heated steering wheel.
- Key Differences: The Standard trims come without the signature panoramic roof, use a mix of fabric and eco-leather upholstery, and feature a 7-speaker audio system instead of the premium 15-speaker setup.
- Driver Assistance: Full Self-Driving capabilities are not included; the vehicles are equipped with standard adaptive cruise control, notes TechCrunch.
Pricing and Market Impact
The Model 3 Standard is priced from $37,000, while the Model Y Standard starts at $40,000.
This launch follows years of anticipation for a truly budget-friendly Tesla. CEO Elon Musk had previously promised a $25,000 model, with production expected in 2025. Instead of a completely new vehicle, the company is offering more accessible versions of its existing lineup to compete with a growing number of EVs from Chinese and European automakers amid its own declining market share.
The strategy has raised concerns among investors that it might cannibalize sales of higher-margin models. Following the announcement, Tesla's stock fell by 4.45%.
Board Proposes New Musk Compensation Plan
In separate news, Tesla's board of directors has proposed an unprecedented compensation package for CEO Elon Musk, potentially worth nearly $1 trillion. The plan's payout is tied to achieving several ambitious milestones:
- Boosting Tesla's market capitalization first to $2 trillion, and eventually to $8.5 trillion.
- Achieving annual sales of 20 million vehicles.
- Deploying 1 million Optimus robots and 1 million robotaxis in commercial operation.