Tesla (TSLA) finally revealed its cheaper EV today, a stripped-down version known as the Model Y Standard.
While Tesla has not yet officially revealed the car, it is now 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.
Appearance-wise, the Standard trim omits the front and rear light bars and comes in only three colors: Stealth Grey, white, and Diamond Black. The only interior color available is black, with what appear to be cloth seats.
Tesla stock gained more than 5% on Monday after the EV maker posted gifs on Sunday of a spinning company logo with the date “10/7” and what appeared to be car headlights shining through smoke. Shares pulled back more than 2% in midday trading on Tuesday following the update to Tesla’s website.
Tesla’s new Model Y Standard. · tesla.com
Earlier reports suggested the car would feature smaller infotainment screens and likely no second-row screen, as well as removal of ambient lighting and some sound-deadening material. It is also expected that Tesla has wrung out costs from its batteries and electric motors to make the vehicle cheaper.
The Model Y Standard version comes after the federal EV tax credit expired in the US on Sept. 30. CEO Elon Musk said in the company’s second quarter earnings call that the cheaper Model Y would come out after the tax credit expires.
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Tesla said following Q2 earnings that the first builds of a more affordable model occurred in June, with volume production planned for the second half of 2025.
Tesla’s release of the cheaper Model Y is expected to help grow volume for the automaker, which has seen sales dip in recent quarters, although Q3 sales jumped as buyers bought EVs ahead of the tax credit expiration.
Tesla’s new Model Y Standard. · Tesla.com
Last quarter, Tesla CFO Vaibhav Taneja said he expected a pull forward of sales in Q3 because of the tax credit expiration, and the numbers back up that claim.
Tesla reported Q3 deliveries came in at 497,099, easily topping Bloomberg consensus estimates of around 439,800 and the 462,890 units delivered a year ago. Tesla said Q3’s total was a new quarterly record for the company.
Tesla is set to report full Q3 results on Oct. 22 after the closing bell, with the company’s annual shareholder meeting to follow on Nov. 6.
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Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram.
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