The Less Expensive, De-Contented Teslas Are Here

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It should come as no surprise to anyone that the end of federal incentives for electric cars has set off a spate of adjustments and adaptations from automakers in the US. After all, many of their electric cars now cost $7,500 more than they did on September 30. Hyundai has announced a massive price cut on the IONIQ 5 of up to $11,000 on some models. (Though, those end on November 3rd.) Tesla is doing something similar by introducing new so-called Standard versions of the Model 3 sedan and Model Y SUV priced $5,000–$5,500 less than before. Perhaps the easiest way to explain what they are — or aren’t — is with this video from Tesla:

Sharp-eyed readers will note the headlights are different than a.) the original or b.) the refreshed version. That is important because it means we will be able to instantly identify those who opted for the low-priced version. One oddity is that the panoramic glass roof is still there — it is just covered with a cloth headliner in the Standard version. Could an enterprising owner remove it later? Perhaps. We’re sure someone will try.

On the Tesla website, the new Model Y Standard — which comes with a single motor powering the rear wheels — is priced at $39,900 — $5000 less than the refreshed Model Y RWD. Range is listed as 321 miles, with a top speed of 125 mph and a 0 to 60 mph time of 6.8 seconds.

The standard color is Stealth Gray. Pearl white is a $1,000 option and Diamond Black is an $1,800 option. 18″ wheels and tires are standard, while the optional 19″ Crossflow wheels are a $1,000 option. The car can tow up to 3,500 lb, but the tow hitch is a $1,000 add-on. Inside, you can get any color you want, so long as it is black, and the faux leather is replaced with black cloth upholstery. It looks fine to our eye, but may remind some of Richard Nixon telling the world during his famous “Checkers” speech that his wife wore a “good Republican cloth coat.”

Tesla Announces FSD 14.1

Also this week, Tesla announced the release of a newly updated Full Self Driving (Supervised) system known as Version 14.1. For a full (some might say exhaustive) description, we refer you to a post by Not A Tesla App for more (many more) details:

FSD (Supervised) is available on the new Standard models as an $8,000 option. We can’t find it on YouTube yet, but if you go to the Model Y Standard configurator page, Tesla has posted a video showing a car using the V14.1 system turning corners, changing lanes, avoiding bozos who exit parking lots unexpectedly, stopping at stop signs and for pedestrians, while all the time the driver’s hands remain completely off the steering wheel.

That video is sure to be a prominent part of a future lawsuit when someone inevitably is hurt or killed by an errant Tesla operating in FSD mode. It is like putting up a big red flashing sign telling the personal injury industry “Please sue us!” Tesla is incapable of learning from past mistakes, which may say something about its top management and Supreme Leader.

What’s Not Included

If you go to the “Compare Models” area of the order page, you can see that part of the decontenting process includes deleting Autopilot. The Standard model gets adaptive cruise control, automatic emergency braking, and blind spot monitoring, but is missing Tesla’s “Autosteer” feature that guides a car to follow lane lines.

Also deleted is the screen for rear seat passengers that is part of the Juniper update. In addition, there is no FM radio and the frequency selective dampers, which give the refreshed Model Y a more comfortable ride quality at city and highway speeds, also seem to have been replaced by simpler passive dampers.

Tesla’s share price zoomed 5 percent on Monday after Tesla posted a cryptic image that some claimed was a fan like the one rumored to be part of the long awaited Roadster 2.0. But after the announcement of the new Standard models, the stock immediately fell back by about 5 percent. There seems to be no rhyme nor reason to how the share price moves. It is appears to be more like sports betting than based on any actual financial considerations.

Tesla sales have been disappointing for the past three quarters, with just a bit of a bump in Q3 thanks to US buyers rushing to sign up for new electric cars before the federal tax credit expired. Q4 sales will probably be down considerably as the market adjusts to the absence of that incentive.

More Competitors

An under-$40,000 Tesla may sound like just what the doctor ordered, but the competition from other brands is going to put pressure on Tesla. The 2026 Nissan LEAF has a rated range of more than 300 miles and starts at just $30,000. Is it as good as a Tesla? Of course not. Don’t be silly. But to save ten grand, plenty of folks may be convinced to buy one anyway. The early reports suggest the new LEAF is a pretty darn good car — so good that Nissan has decided to withdraw the slow-selling ARIYA from the US market and stake its EV future on the LEAF.

The Chevy Equinox EV starts around $35,000 range and delivers over 300 miles of range. True, the Tesla Standard offers better software and FSD, but at a premium of about $2,000 over the entry-level Equinox.

The 2026 IONIQ 5 now starts at around $35,000 as well after Hyundai slashed around $10,000 off of its base price. Is it a match for the Model Y? Many would argue it is not, but it does feature 800-volt architecture for faster charging. Its stated range is about 70 miles less than the Model Y Standard’s, but as always in the world of sales, some will buy the Hyundai over the Tesla for any number of reasons, not the least of which is the persistent stench associated with Elon Musk’s politics.

Same Old, Same Old

Tesla is serving up another helping of “same old, same old” with the new Standard models. What people want are new models — something every other manufacturer on the face of the Earth understands to be a key component of effective marketing.

“Elon has this way of getting people to really focus on the future. And today is the downside of that,” James Stanley, an analyst at StoneX told the BBC. “It’s a lower cost EV that everyone pretty much saw coming.” Elon is brilliant at promising things, but not so good at delivering on those promises.