Tesla Releases Its Much-Anticipated Affordable Electric Car Models. Here's How Much They Cost

Core Insights - Tesla has introduced new entry-level versions of the refreshed Model Y and Model 3, aimed at making electric vehicle ownership more accessible by lowering the entry price [1][12] - The move is seen as a strategic shift back to Tesla's roots of providing affordable, long-range electric vehicles, appealing to first-time EV buyers [11] Pricing and Market Context - The Model Y Standard starts at $39,990, while the Model 3 Standard is priced at $36,990, making them more competitive in the market [4][8][12] - The average new vehicle transaction price in the US is currently $48,644, which is 2% lower than the peak in December 2023 but still 13% higher than in June 2021 [3] Model Specifications - The Model Y Standard features a 69 kWh battery, an EPA-estimated range of 321 miles, and a 0-60 mph time of 6.8 seconds, with a peak charging rate of 225 kW [4] - The Model 3 Standard shares similar specifications, including the same battery and range, but accelerates from 0 to 60 mph in 5.8 seconds with 286 horsepower [8] Interior Features - Both models have simplified interiors, with manual adjustments for most controls, a 7-speaker audio system, and touchscreen-controlled seat adjustments [5][9] - The rear passenger screen has been removed in both models, and the center console has been redesigned for a more minimalist approach [6][9] Performance and Efficiency - The Model Y Standard is 5% more efficient than the higher trims, while both models support Tesla's Supercharging network, allowing for rapid charging capabilities [4][7] - The Model Y has a towing capacity of 3,500 pounds and offers 75 cubic feet of cargo space, while the Model 3 provides 24 cubic feet [7][9] Strategic Implications - This new approach is expected to attract a broader customer base, moving away from the luxury segment and focusing on affordability and accessibility [11] - The introduction of these models could serve as a compelling reason for potential buyers to switch to electric vehicles, especially those hesitant due to price concerns [11]