Tesla Introduces Sub-$40,000 Models to Offset US EV Incentive Losses

Oct 08, 2025 02:23 pm CST

Tesla has launched more affordable versions of its Model 3 sedan and Model Y SUV, priced at $36,990 and $39,990 respectively, as a strategic response to the elimination of US electric vehicle tax incentives. These new standard versions offer reduced prices of approximately 11-13% compared to premium longer-range variants, though they come with less battery range and fewer features.