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2026 Tesla Model Y Standard: Cut-price electric SUV and cheaper Model 3 revealed

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Tesla may have axed plans for a smaller entry-level electric vehicle (EV), but it has now unveiled a budget-oriented variant for its two most popular models. The bad news is they’re only for the US and won’t be available in Australia – at least for now.

Both the Model 3 mid-size sedan and Model Y mid-size SUV – Australia’s most popular EV – are now available in North America in a new ‘Standard’ trim, which strips back several features otherwise standard in the two battery-electric cars, for a lower price.

Following the end of the US$7500 EV tax credit last month, the Standard variants are the new starting points for each model line in the US, prompting the former Long Range variant to be rebranded as the Premium, which is now available in rear- and all-wheel drive forms.

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The Model 3 Standard is priced at US$36,990 before on-road costs in North America (~A$56,352), which well below US$42,490 before on-roads (~A$64,730) price of the newly named Premium RWD.

The Model Y Standard, meanwhile, costs US$39,990 before on-roads (~A$60,396), which is similarly less than the Premium RWD’s price of US$44,990 before on-roads (~AU$68,561).

For context, the Model 3 starts at $54,900 before on-roads for the base RWD in Australia, while the Model Y starts at $58,900 before on-roads. If US pricing is anything to go by, the Standard variants could be priced around $45,000 if sold in Australia.

Australian buyers will have to wait patiently though, as a Tesla Australia spokesperson told CarExpert there’s “no information on this – it’s a US-spec car only” and that both models have been “launched for the US market”.

There have been few exterior tweaks for the Model 3 Standard. 18-inch wheels are standard – as they were on the previous base RWD, with 19s optional – while grey, white and black are the only exterior paint colours available. And white and black will cost extra.

Inside, full leather seat trim has been swapped out for partial ‘textile’ upholstery, the rear touchscreen has been removed, and the powered steering column adjustment is no longer, though the indicator stalk has been re-added.

Interestingly, Motor1 also reports that the Model 3 has lost power adjustment for its side mirrors, reverting to a manual arrangement. However, a full glass roof remains.

Under the skin is a 69.5kWh lithium-ion battery, providing a claimed driving range of 321 miles (around 516km). This is down from 363 miles (around 584km) in the Premium RWD but, confusingly, the Standard’s range is only 4km shorter than that of Australia’s base RWD model.

Even more confusing are Tesla’s performance claims. The American brand claims a 0-60mph (0-96km/h) time of 5.8 seconds for the Model 3 Standard, which is somehow considerably slower than the Premium RWD’s 4.9-second claim, despite the latter variant being heavier.

Car and Driver reports the Standard makes 286hp (213kW), which is identical to the US-market Long Range RWD that became the Premium RWD, making the 0-60mph times seem even less logical.

This doesn’t quite line up with Australian specifications either, with the base RWD producing 208kW for a claimed 0-100km/h time of 6.1 seconds.

In contrast to the Model 3’s minimal makeover, the Model Y Standard has undergone more drastic cosmetic tweaks – some of which were previewed a few months ago. Most notably, the front and rear light bars have been all but removed, which means there’s a new front bumper to accommodate the isolated headlights.

Again, 18-inch wheels are standard, while 19s are optional, and grey is the only standard exterior finish in a colour palette also comprising white and black.

Interior changes are a little more drastic than the Model 3’s too, namely with its redesigned centre console. The textile upholstery is otherwise the same, as is the indicator stalk and rear touchscreen delete, while rear seat heating and front seat ventilation have also been stripped.

In a bizarre decision, the Model Y retains a glass roof – but only on the outside. That means the roof is still made of glass, but there’s a traditional headliner inside, complete with insulation and sound-deadening, which Tesla told Car and Driver was cheaper than engineering a fixed metal roof.

The battery is the same size as the Model 3 Standard’s at 69.5kWh, but the claimed 0-60mph sprint times compared to other Model Y variants make more sense here. With a claimed 300hp (223kW), the Standard RWD can do it in a quoted 6.8 seconds, which is slower than the more powerful (roughly 250kW) Premium RWD’s 5.4-second claim.

Claimed range is identical to the Model 3 Standard at 321 miles (around 516km), but only on 18-inch wheels. Fitting the 19-inch alternatives drops the claim to 301 miles (around 484km), though both are more than the base Australian RWD variant’s WLTP claim of 466km.

Charging rates are also down for both Standard models. Where the Premium RWD variants of both cars can be DC fast-charged at up to 250kW via a Tesla Supercharger, the Standard grades can only be charged at up to 225kW.

This announcement is just the latest in a recent slew for the Model Y – the world’s best-selling car in 2023. The popular electric SUV received a substantial ‘Juniper’ facelift earlier this year, and the range was recently bolstered in China by the stretched, six-seat Model Y L.

So far the long-wheelbase, three-row SUV has only been confirmed for China, where both the Model Y and Model 3 are produced for Australia.

MORE: ‘Budget’ Tesla Model Y spied: How EV brand will get the price down

MORE: 2026 Tesla Model Y L: Order books open for six-seat SUV

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