Today, Tesla announced a new variant of the Model Y crossover for North America. Tesla fans have long-awaited a cheaper entry-level model; this was supposed to be the $25,000 Model 2. But the development of that electric vehicle was shelved earlier last year as CEO Elon Musk began to lose interest with car-making in favor of humanoid robots.
However, car sales still make up the overwhelming majority of Tesla’s revenue, and the removal of the IRS clean vehicle tax credit at the end of September may have juiced US EV sales in Q3 2025, but sales are expected to dip significantly in the current quarter.
The new Standard Range Model Y starts at $39,990, with 321 miles (516 km) of range from its rear-wheel drive powertrain, compared to the now-Premium rear-wheel drive Model Y, which has an EPA range of 357 miles (574 km). In the past, Tesla has software-locked batteries to a smaller configuration; however, here we believe the Standard Range Model Y uses a 69 kWh pack.
It’s exciting to see Tesla expand its lineup with new variants of the Model 3 and Model Y! This move will surely attract more fans and offer even more options for potential buyers. Looking forward to seeing how these models perform on the road!
Absolutely, it’s a great step for Tesla! Expanding the lineup could really make their vehicles more accessible to a wider range of consumers. Plus, with the growing interest in electric vehicles, these new models might help meet the increasing demand in North America.