From Bearded Tesla Guy.

Tesla just released the new cheaper Model Y, and surprise, they also released a new cheaper Model 3 as well! Tesla has been talking about cheaper models for the entire year, and it looks like we finally have the details on what that includes.

The Tesla Model Y now comes in 4 configurations, including this new Standard Rear Wheel Drive. Tesla seems to have updated the naming convention on the other models to better reflect this new entrant, calling the previously LR RWD and LR AWD models now the Premium Rear Wheel Drive Model Y and the Premium All Wheel Drive Model Y.

This new stripped down Model Y certainly comes with a lot of features removed and cheaper materials. The extent to which Tesla went to get cost out is hard to miss. Some parts are actually a return of things we had in the 2020 Model Y, including single pane windows.

Not surprisingly we have a new front and rear look on the Model Y Standard. The front loses the light bar, and the head lights have been moved upward, making just 2 cutouts total. On the rear, the tail lights are much smaller, the light bar there has been removed also, and the rear glass appears to be the same shape as the old Model Y.

Speaking of glass, the Model Y Standard states it does not have a sunroof, but there is clearly glass up there. It turns out Tesla just put a headliner over the sunroof to cover it up. So presumably you will be able to pretty easily swap out the headliner to get access to a nice sunroof.

Of course there are other features that have been cut, giving us manual seats, heat in front seats only, fabric inlays in the seats, no ambient lights, etc. We also now have an 18" wheel option, which helps the new cheaper Model Y achieve the 321 miles of rated range.

Options are mostly there, although you can’t change the interior color, and you can only get Gray, White or Black. You are also able to upgrade the wheels, but it’s $1,500 and gets you the 19" aero wheels that are standard on the Premium RWD Model Y. All this with a starting price of $39,990.

Much the same over on the Model 3, except the price is $36,990. Same range, mostly same reduced features, except the outside looks exactly the same, the sunroof is still open and the center console only removed one of the sliders for the cup holders.

Although cheaper models are a welcome change, $40k is a hard pill to swallow for such a trimmed down car. Just a month ago, with the tax credit, you could have gotten the premium rear wheel drive Model Y for about $3,500 less than this. But with the tax credits gone for EV’s, it doesn’t really matter now.

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