Tesla has abandoned the idea of a new budget electric vehicle and instead released a simplified version of the Model 3, which is $5500 cheaper than the previous most affordable version in the USA.

The new Tesla Model 3 Standard costs $38,630 including delivery ($1390) and order processing fee ($250). This is the most affordable way to own a new Tesla in 2025.

The Model 3 Standard is $5500 cheaper than the Premium RWD version. However, to save money, buyers will have to give up several options:

  • Only three body colors to choose from: white, black, or gray
  • Different 18-inch wheels
  • Cloth seat upholstery instead of leather
  • No decorative interior lighting
  • Manual adjustment of the steering column position
  • No seat ventilation
  • No rear screen for passengers
  • Different shock absorbers
  • Manual adjustment of side mirrors
  • The Autosteer function has also been removed, although the full Full Self-Driving (Supervised) package can be purchased for $8000.

The Model 3 Standard is equipped with a rear electric motor. The range is 321 miles (517 km) according to the EPA cycle, which is less than 363 miles (584 km) in the Premium RWD. Acceleration from 0 to 60 mph (96 km/h) takes 5.8 seconds.

The charging speed at Tesla Supercharger stations is also lower: 170 miles in 15 minutes versus 195 miles in the Premium version.

The Model 3 Standard becomes the most affordable Tesla, as the base Model Y costs $41,630. Among other electric vehicles under $40,000, the main competitors will be the new Nissan Leaf, Chevrolet Equinox EV, and Hyundai Ioniq 6.

Deliveries of the new version will begin in December 2025 or January 2026.

Source: Motor1