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Tesla downgrades its best-selling EVs

US EV giant Tesla has moved to cut prices across the Model Y and Model 3 by stripping features from the two vehicles.

Tesla downgrades its best-selling EVs
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In a move consistent with traditional car brands wanting to move stock, Tesla has de-contented the Model Y and Model 3 to offer buyers more affordable choices.

Revealed for the US overnight, the new Tesla Model Y Standard and Model 3 Standard now serve as the entry-level variants for their respective model ranges, with the existing RWD grades now marketed as the ‘Premium’.

This change has not occurred in Australia, where the Model Y and Model 3 are imported from China, unlike US market examples which are made in California and Texas.

Tesla Model 3 Standard
Tesla Model 3 Standard
Tesla Model Y Standard
Tesla Model Y Standard

For the Model Y, the best-selling EV globally, the new Standard removes the front light bar, has simpler headlights and tail lights, plus and fits smaller 18-inch wheels, while grey is the only no-cost option paint, as even white and black incur a premium.

Other minor tweaks have been made to the front and rear bumpers, as well as the rear window.

Inside the interior is now upholstered in cloth rather than faux leather, a new centre console has seen the rear passenger 8.0-inch infotainment screen replaced with air vents, and the steering column is now manually adjustable.

Front seats have lost ventilation and the rear outboard seats are no longer heated, plus ambient lighting has also been deleted. A seven-speaker sound system replaces the 15-speaker unit in existing Model Ys, while FM radio is also absent.

The Model 3 largely mimics the Model Y’s changes, though it also goes without power-adjustable mirrors, with manual adjustment only - a rarity in modern vehicles.

Both vehicles have lost Tesla’s Autopilot system as a standard feature, as well as frequency-selective dampers, reverting to a passive shock absorber system.

A smaller battery pack can now be found in the Model Y and Model 3 Standard, reducing driving range by about 10 per cent.

All told, the downgraded Tesla Model Y Standard and Model 3 Standard are US$5500 (A$8350) and US$5000 (A$7600) less expensive respectively than the previous entry-level models. Prices start from US$39,990 (A$60,700) for the Model Y, and US$36,990 (A$56,200) for the Model 3.

Their launch comes just a handful of days after the US Government repealed its US$7500 ($11,400) federal tax credit for EVs.

Jordan Mulach

Jordan Mulach

Jordan Mulach is an Australian motoring journalist with a background in motorsport reporting. Now a leading automotive news writer, he combines industry expertise with a passion for cars, sim racing, and all things motoring.

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