Currently reading: Tesla launches stripped-back Model Y and Model 3 variants

Entry-level cars gets part-cloth interior and smaller centre console; are claimed to be the most efficient Teslas yet

Tesla has launched the Model Y Standard and Model 3 Standard, two new entry-level variants created to drive sales following one of the brand's worst ever periods.

Launched in the US, the Y Standard is priced at $39,990 – $5000 cheaper than the rest of the range – with the 3 Standard at $36,990 – $5500 cheaper.

The pair are claimed to be the most efficient Tesla models yet, both offering up to 321 miles on the US’s strict EPA testing cycle, which translates to around 360 miles via Europe’s WLTP test.

Tesla doesn't give exact battery capacities, but the Standard is likely to draw electricity from the same 60kWh pack as the Rear-Wheel Drive models sold in the UK and Europe, which have WLTP ranges of 311 (Y) and 323 (3) miles respectively.

These increase in ranges have been achieved by a “distinctive” new design, said Tesla. While this marks the Standard out from the rest of the Model Y and Model 3 ranges, it also makes it more slippery, the company added.

In an effort to cut costs, the Standard models are a bit of a stripped-back affair. Inside, faux leather is replaced by part-cloth saeting and the full-length centre console is basically cut in half to create a similar open area to that found in the Cybertruck.

No physical key is offered, with owners instead accessing the car via their smartphones.

Tech-wise, the Standard models are similar to the rest of the Model Y and Model 3 ranges. They gets the same 15.4in central touchscreen (which continues to control all of the car’s main features), remote climate control capabilities, Sentry Mode and Dog Mode.

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Tesla’s variable cruise control system, Autopilot, is also fitted. In the US, the Standard models can also be optioned with Tesla’s Full Self-Driving system.

Autocar understands that a launch of the Standard models in other regions (including the UK and Europe) is planned, given the need for Tesla to turn around sales slumps in key markets such as China – previously one of its most significant.

The Standard models will initially be built in the US. Other markets don't get Teslas built in the US, so for the car to be sold in Europe, production would need to be expanded to either Berlin, Germany, or Shanghai, China. Both factories already build both the Model Y and Model 3. The latter is unlikely, given the import tax levied on Chinese-made EVs by the EU.

The importance of the Standard models cannot be overstated: Tesla boss Elon Musk previously said the new cars were created in a bid to broaden the brand’s appeal.

This year has been difficult for Tesla. Despite introducing an updated version of the Model Y, it has struggled in China and seen its sales drop globally.

Tesla hopes the Standard will especially help to incentivise sales in the US, where president Donald Trump's rollback of emissions mandates has included axing the $7500 government EV grant, and interest in EVs has therefore dipped. 

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Ongoing fluctuation of the EV market worldwide, a reduction in its average model selling price, a rise in the cost of living and a general downturn in Tesla EVs' popularity also contributed to the firm recording a 13% decline in sales globally between April and July.

Tesla saw a 12% dip in revenue to $22.5 billion in the quarter, prompting Musk to warn that this could become one of its most challenging periods. He said in July that Tesla “probably could have a few rough quarters”. 

Tesla also blamed the difficulties on higher manufacturing costs and a reduction in sales of regulatory EV credits to other car makers, which it said contributed to a $154 million revenue drop in Q2.

Tesla’s Q3 earnings will be announced on 22 October. The firm hopes to see its financials slightly improve over Q2, given deliveries were up by 115,000 cars globally, driven by a ramp-up in order fulfillments of the update Model Y. Production, however, was up by only 37,000 cars.

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Will Rimell

Will Rimell Autocar
Title: News editor

Will is Autocar's news editor.​ His focus is on setting Autocar's news agenda, interviewing top executives, reporting from car launches, and unearthing exclusives.

As part of his role, he also manages Autocar Business – the brand's B2B platform – and Haymarket's aftermarket publication CAT.

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