Was Tesla’s cheaper EV completely overhyped?

Remember Tesla’s $25,000 budget EV? Neither do we, since it was scrapped before it ever reached production. But there has been renewed interest in a more affordable Tesla this year, since a cheaper Model Y was confirmed.

We already know that this budget Model Y will lose a host of desirable features, such as a rear infotainment display and a glass roof. It’ll essentially be the opposite of the new Model Y L, a more spacious and fully loaded version of the crossover.

Crucial to the budget Model Y’s success will be its price, which has leaked via the website’s source code and was spotted by The Tesla Newswire on X.

Starting Price Of Under $40k

Now that the federal tax credit is dead, the need for a cheaper Tesla model has increased. According to the leak, this version of the crossover will be called the Model Y Standard, and it’ll have a starting price of $39,990. A few weeks ago, we predicted a starting price of between $35k to $37k, especially given all the omissions. 

The $39,990 price—assuming the leak is accurate and Tesla makes no other adjustments—will make the Model Y Standard $5,000 cheaper than the next trim up, which is the Long Range Rear-Wheel Drive. The Tesla Newswire included an apparent image of the Model Y Standard, and it lives up to its name with rather plain-looking 18-inch Aperture wheels, single-part headlights (instead of the front light bar on other Model Ys), and a redesigned front fascia, just to let everyone know you bought the cheapest Model Y available.

As confirmed previously, there will be a 15.4-inch touchscreen but no rear touchscreen. There’s no glass roof, and it has a manually adjustable steering column, more basic Textile decor, and manually adjustable air vents in the second row. We can live with some of these downgrades, such as the manual steering column, but Tesla fans may find it hard to part with some of the other features.

Base Model 3 One Of Several Better Options

Tesla Model 3

Tesla

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At $42,490, the base Model 3 Long Range Rear-Wheel Drive is not much more expensive than the Model Y Standard, and it looks and feels like any other Model 3, whereas the omissions from the Model Y Standard are much more obvious.

At around the $40,000 mark, you can also get the Chevy Equinox EV with AWD, which makes 300 horsepower—this is enough to enjoy that instant surge of electric power. The base Ford Mustang Mach-E is cheaper at $37,995, and Hyundai has just slashed the price of the Ioniq 5, which will now start at only $35,000.

All of this means that Tesla’s cheaper Model Y doesn’t immediately sound as appealing as it did. We also don’t know if range, battery specs, and performance have been diminished. Historically, Tesla has been class-leading in these areas.

No date has been confirmed for the Model Y Standard’s reveal, but we expect it to be unveiled soon, as a few examples were recently spotted out in California.