USA

Tesla reveals cheaper Model Y Standard starting at $39,990

Tesla reveals cheaper Model Y Standard starting at ,990

Tesla (TSLA) finally unveiled its cheaper EV today, a stripped-down version known as the Model Y Standard.

Although Tesla has not yet officially announced the vehicle, it is currently available for order on Tesla’s US website. The Model Y Standard is rear-wheel drive and will start at $39,990. It has an estimated range of 321 miles with standard 18-inch wheels.

In terms of appearance, the Standard equipment does not include front and rear light bars and is available in only three colours: Stealth Grey, white and Diamond Black. The only interior color available is black, with what appear to be cloth seats.

Tesla shares gained more than 5% on Monday after the electric vehicle maker released gifs on Sunday. yarn company logo It is dated “10/7” and appears to car headlights shining through smoke. Shares fell more than 2% in midday trading Tuesday following an update on Tesla’s website.

Tesla’s new Model Y Standard. · Tesla.com

Previous reports suggested the car would feature smaller infotainment screens and possibly no second-row display, as well as removing ambient lighting and some sound deadening materials. Tesla is also expected to cut costs from its batteries and electric motors to make the vehicle cheaper.

The Model Y Standard version comes after the federal EV tax credit expires on September 30 in the US. The cheaper Model Y will be available after the tax credit expires, CEO Elon Musk said on the company’s second-quarter earnings call.

Read more: How to avoid sticker shock on Tesla car insurance?

First production of a more affordable model took place in June, with mass production planned for the second half of 2025, Tesla said following its second-quarter earnings.

Tesla’s launch of the cheaper Model Y is expected to help volume growth for the automaker, which has seen sales decline in recent quarters; but third-quarter sales increased as buyers purchased electric vehicles before the tax credit expired.

Tesla's new Model Y Standard. — Tesla’s new Model Y Standard. · Tesla.com

Last quarter, Tesla CFO Vaibhav Taneja said he expected an increase in sales in the third quarter due to the expiration of the tax credit, and the numbers support this claim.

Tesla reported third-quarter deliveries totaled 497,099, easily surpassing Bloomberg’s consensus estimates of around 439,800 and the 462,890 units delivered a year ago. Tesla said the third-quarter total was a new quarterly record for the company.

Tesla will report third-quarter results on October 22 after the closing bell, and the company’s annual shareholder meeting will be held on November 6.