Fans and investors alike were disappointed with the debut of less expensive variants of the Model 3 and Model Y, both dubbed “standard.” Both groups — and others — were hoping to see an all-new entry-level vehicle from the EV leader.
Tesla has a new Standard, and it’s less expensive. The new Model 3 Standard is about $5,500 cheaper than the Premium variant.
Tesla and CEO Elon Musk teased big news set to come Tuesday, leading some to speculate the announcement would be the long-awaited arrival of a cheap, entry-level vehicle with a price below $30,000. However, what they got — the Model 3 Standard and Model Y Standard — landed with a resounding thud.
“Very disappointing,” wrote @dsum3r in a post on X, formerly Twitter. “Especially the price. The stocks will faaall!”
This theme carried much of the response to Tesla’s X post about the new models, although some were positive, perhaps the overall feeling was best described by @scottpidity6969 who wrote, “This is awful.”
What changed
The two vehicles now get a base model trim called Standard. The upside? It’s about $5,000 cheaper than the next variant up on the chain. The Model 3 Standard starts at $38,630, which is about $5,500 less than the next-least-expensive model. Meanwhile, the Model Y Standard begins at $41,630 — $5,000 lower than the Premium.
The downside? Less tech, less power, less range. Buyers get cloth seats instead of the standard faux leather. They also get seven speakers instead of the standard 15, plus no infotainment screens for those in the second row.
The Model 3 Standard’s range is 321 miles, which is more than 40 less than the Premium version’s 363 miles. It’s also slower, racing from zero to 60 mph in 5.8 seconds rather than 4.9.
The Model Y Standard sees similar dips in performance with range dropping from 357 miles to 321 and a drop from 5.4 seconds to 6.8 seconds from stop to 60. And that’s because each gets just one motor on the rear axle; thus, they are rear-wheel drive only.
Sad but true
The company’s stock took a hit after the announcement didn’t reveal a new entry-level model or even — optimistically by some — the reveal of the second-generation Roadster, Tesla’s first offering as a company. In all, Tesla’s stock fell about 4.5% in the wake of the reveal.
“We view the announcements as a big disappointment,” said Garrett Nelson, an analyst with CFRA.
Investors were grumpy this morning as well, as the stock took a big drop right after the opening bell. It opened at $437.57, then dropped into the $428 range right away. However, it’s been steadily clawing its way back up to a little beyond its opening price in the $438 range in late-day trading.
The investors and aficionados lamented the lack of progress on the on-again, off-again Model 2 that Musk touted less than two years ago. He said the company was planning to build it after it got the Cyber Truck up and running, but then decided it was not a viable answer.
Instead, he plowed the company’s resources into the development of the Cyber Taxi or Cyber Cab, including a purpose-built vehicle that is not currently available for purchase.
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