Tesla unveils lower-priced versions of Model 3 and Model Y

October 08, 2025 / 11:58 AM

Sharjah24 – Reuters: Tesla has introduced new, more affordable versions of its Model 3 and Model Y vehicles in an effort to increase sales and regain market share amid rising competition. Deliveries are expected to commence between late 2025 and early 2026.

New pricing announced

The company launched the Model Y SUV at a starting price of £39,990, while the Model 3 saloon will begin at £36,990—making both models considerably more affordable than their current, higher-end counterparts.

Standard performance range

The new versions, labelled “Standard,” can travel up to 516 kilometres (320 miles) on a single charge. However, their acceleration is slower than the “Premium” variants.

According to Tesla’s website, both models are now open for pre-order, with deliveries planned between December 2025 and January 2026 across various markets.

Reduced features compared to premium models

The newest lower-cost models lack several advanced features available in higher trims. They do not include the “Autosteer” driver-assistance system or rear passenger screens.

Tesla also removed the LED light strip from the more affordable Model Y. The interiors feature fabric seats (with optional leather seats for the Model 3) and manually adjustable side mirrors, highlighting Tesla’s cost-cutting approach.

Musk’s strategy and investor concerns

Tesla CEO Elon Musk has long promised to make electric vehicles more affordable for a broader audience. However, last year he abandoned plans for a brand-new $25,000 EV model and chose instead to launch cheaper versions of existing cars.

This decision has sparked concerns among investors and analysts that cheaper models may erode sales of higher-end versions and limit growth potential. After the announcement, Tesla’s shares dropped 4% before Wall Street trading closed.