Tesla is preparing to unveil a lower-cost version of its Model Y SUV, as the company moves to sustain demand following the expiration of federal tax credits for certain electric vehicles in the United States.
The new variant, reportedly named the Model Y Standard, is expected to debut on October 7. Information uncovered in Tesla’s website code suggests a starting price near $39,990, though analysts say a final price closer to $35,000 would better position it to fill the gap left by the $7,500 tax credit phase-out.
According to early details, the budget version will feature several hardware reductions compared with higher trims. The vehicle is said to lack a hood light bar, glass roof, and power-folding mirrors, while the interior has been simplified with fabric seats, manual adjustments, and limited console storage. The air filtration system has also been downgraded from a HEPA unit to a standard particulate filter.
Despite these changes, Tesla will retain certain advanced elements, including matrix headlights and a front bumper camera compatible with Full Self-Driving (FSD) version 14. Similar cost-saving configurations have appeared in select international markets, such as Mexico, where stripped-down variants saw mixed reception.
Chief Executive Elon Musk previously confirmed that Tesla’s long-promised “affordable” model would be a modified version of the Model Y, saying it would retain the features “fans have come to expect.” The new trim is expected to play a key role in boosting fourth-quarter sales as Tesla navigates shifting demand and a more competitive EV market.