The Model 3 Standard starts at Rs38,630, including destination and order fees, and will be available in December or January. The Model Y Standard starts at Rs41,630, available in November or December.
These new versions cost $5,500 and $5,000 less than the previous Premium models. Tesla CEO Elon Musk revealed them on his social media platform, X.
The Standard models have fewer features than Premium versions. They lack the eight-inch second-row touchscreen, have only seven speakers instead of 15, no subwoofer, and cloth interior instead of cloth and “microsuede”.
The driving range is slightly lower than Premium models but a bit higher than the top-end Performance model. Acceleration is slower, and they use passive shock absorbers instead of the more advanced ones in Premium versions.
Read more: Tesla’s downfall? Sales of Musk’s EV giant plunge 89% in key countries!
Tesla’s shares dipped about 4% after the announcement as investors hoped for even lower prices. The company had promised a $30,000-range model, but production is ramping slower than expected due to previous EV credit deadlines and product complexity.
Other automakers are also introducing cheaper EVs. Hyundai recently launched models up to Rs9,800 lower than earlier versions. Tesla faces competition as its cars have become more expensive compared to gas-powered vehicles.
Tesla reported record global sales in the third quarter but suffered big drops in the first two quarters. About 46% of Tesla’s revenue comes from the US and 21% from China. Lower US sales could leave Tesla’s factories with extra capacity, which these new Standard models aim to fill.
Tesla is trying to attract more buyers with affordable options, but fewer features may limit appeal. The timing is crucial as rivals also lower EV prices. How buyers respond will shape Tesla’s US market share in 2025.
