Tesla's "Cheaper" Sub-$40K Model 3 and Model Y

The $25K Tesla is still MIA, replaced by sub-$40K offerings.

By EVWorld.com Si Editorial Team

Tesla's latest move to democratize EV ownership comes in the form of two new “Standard” variants of its Model 3 and Model Y - both priced under $40,000. That's a headline-grabbing figure, but what do you actually get for the money? And more importantly, what do you give up?

We spent time digging into the specs, features, and delivery timelines to help buyers decide whether these pared-down Teslas are worth the trade-offs. Spoiler: they’re not just cheaper—they’re strategically stripped.

Both models use a single-motor, rear-wheel-drive setup paired with a 69 kWh battery pack. That’s enough to deliver a solid 321 miles of EPA-rated range, which is more than some dual-motor variants. But performance takes a hit. The Model 3 Standard hits 0–60 mph in 5.8 seconds, while the Model Y Standard lags slightly at 6.8 seconds. Top speed for both is capped at 125 mph.

Inside, the cost-cutting is more apparent. Gone are the powered seats, steering column adjustment, subwoofer, and ambient lighting. You’ll find fewer speakers (7 instead of 15), no FM/AM radio, and no rear entertainment screen. Even the suspension has been downgraded. Tesla’s signature glass roof is still present, but now hidden behind a headliner. Exterior styling is simplified with smaller 18-inch wheels and limited color options—Stealth Grey is standard, with Pearl White and Diamond Black available at extra cost.

Despite the omissions, both models retain Tesla’s core tech, including Full Self-Driving hardware (though Autosteer is disabled) and the same 15-inch touchscreen interface. The result is a clean, functional EV that delivers range and efficiency without the frills.

For buyers, the new Standard variants offer a compelling entry point into Tesla’s ecosystem. Just be ready to live without some of the luxuries. If range, reliability, and price are your top priorities, these models deliver. If you’re chasing performance or premium features, you’ll need to look higher up the trim ladder.

Model	Price	Range	0–60 mph	Top Speed	Notes
Model 3 Standard	$36,990	321 mi	5.8 sec	125 mph	Best value for commuters
Model Y Standard	$39,990	321 mi	6.8 sec	125 mph	Best value for families
Model 3 Performance	$54,990	309 mi	2.9 sec	163 mph	High-end speed
Model Y Performance	$57,490	306 mi	3.3 sec	155 mph	High-end utility

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