Tesla launches cheaper version of Model Y, available for orders immediately – Here's how much it will cost now

Core Insights - Tesla has launched budget-friendly versions of its Model Y SUV and Model 3 sedan, priced at $39,990 and $36,990 respectively, to address declining sales and increasing competition [1][4] - The new standard models have a range of 321 miles (516 km) but feature less acceleration compared to premium versions, and are available for order with deliveries expected between December 2025 and January 2026 [2] - The standard models lack certain features such as Autosteer and rear passenger touchscreens, and have made some design changes to reduce costs [3] Pricing and Market Strategy - The introduction of these affordable models comes after the cancellation of a planned $25,000 EV, with concerns that these cheaper options may affect sales of existing models [4] - The expiration of US EV tax credits led to a $7,500 increase in EV prices, impacting sales dynamics, with expectations of a slowdown unless more affordable options are available [5] - CEO Elon Musk emphasized the importance of affordability, stating that many potential buyers lack sufficient funds, hence the need for lower-priced vehicles [5]