By John Meyer, consultant in business – Eurasia Business News, October 7, 2025. Article no. 1822.

Tesla has debuted cheaper, stripped-down versions of its Model 3 and Model Y electric vehicles in October 2025. These new “Standard” trims are the most affordable in Tesla’s lineup, priced at about $37,000 for Model 3 and $40,000 for Model Y. However, many premium features have been removed to reduce costs, including the front and rear light bars, glass roof, power-folding side mirrors, rear seat display, ambient lighting, and some audio components. The standard models have smaller 18-inch wheels, reduced range and acceleration due to a smaller 69kWh battery, and lack some advanced driver assistance features such as Autosteer by default.

Despite the price cut from Tesla’s pricier “Premium” trims ($42,500 for Model 3 and $45,000 for Model Y), these new versions are actually more expensive than the cars were a week prior due to the expiration of the U.S. federal EV tax credit worth $7,500, which previously reduced buyers’ costs. Tesla CEO Elon Musk reportedly supported the removal of this federal credit, which effectively hiked Tesla prices recently. The diminished tax incentive means the “more affordable” Tesla models do not currently provide the same financial advantage to U.S. consumers as before.

The new trims aim to appeal to cost-conscious buyers and potentially address Tesla’s sales slowdown amid growing competition and an aging vehicle lineup. While closer to the price range of traditional gasoline vehicles, they fall short of Tesla’s earlier promises to produce an entry-level EV around $25,000. Deliveries for these stripped-down versions are expected to begin in late 2025 or early 2026.

Read also : Tax Management strategies for Digital Nomads

Tesla’s sales surged to a record quarter, with over 497,000 vehicles sold, driven by U.S. consumers rushing to purchase electric vehicles before the expiration of the $7,500 federal tax credit. This marked a significant increase of 7.4% from the previous year, with the Model Y SUV and Model 3 sedan combined sales rising 9.4% to 481,166 vehicles. Despite this, Tesla is still on track for another annual decline, with a projected sales drop of 10% globally in 2025.

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© Copyright 2025 – Eurasia Business News. Article no. 1822