Tesla ’s promised cheaper Model Y is nearing a full reveal. Although it’s rumored to be only $5,000 cheaper than the current base model, it’ll still be the only new Tesla to start at under $40,000.

Like Tesla’s new Model Y Standard, the Model 3 Standard trades slightly lower estimated range, a slower 0-60 mph time and fewer (or less expensive) features for a lower price of entry.

Tesla has just launched Standard version of Model 3 and Model Y in the United States with a starting price of $36,990 for Standard Rear-Wheel Drive Model 3 and $39,990 for Standard Rear-Wheel Drive Model Y.

The Tesla Model Y has been facing increasing pressure from other compact crossover electric SUVs, and the 2025 Ford Mustang Mach-E is among its top rivals. Tesla’s Model Y starts at $44,490 for its entry-level Long Range Rear-Wheel Drive (RWD) trim,

Tesla’s Model Y has been the default electric crossover for years, but a new TikTok review of the 2026 Kia EV6 asks whether it's time for a dethroning.

This 2021 Tesla Model Y Long Range AWD features a Midnight Silver Metallic exterior with a Satin Dark Gray wrap, and a black interior

Elon Musk has said his automaker would sell an affordable Model Y, as “people don’t have enough money in the bank account to buy it” despite high demand.