- Tesla’s new affordable Model 3 and Model Y aren’t getting the red carpet reception like it may have hoped for.
- Many long-time fans are slamming the automaker for releasing a car with what they’re calling a terrible value proposition.
- If sales aren’t propped up by the cheap trims, they could go the way of the cheap Cybertruck.
Tesla’s long-awaited “affordable” versions of the Model 3 and Y are finally here. What was rumored to be Tesla’s $25,000 “Model 2” has turned out to be a big ball of disappointment for many Tesla fans. Parts of the internet are now in full meltdown mode, delivering a pretty brutal response to the new models.
Sure, the cars are cheaper, there’s no denying that. And to make them cheaper, Tesla had to make certain concessions. But the argument from onlookers is that Tesla didn’t innovate—it stripped a bunch of key features instead and failed to lower the price enough to justify just how much the EVs were gutted.
Photo by: Tesla
On X, the social media platform owned by Tesla CEO Elon Musk, Tesla superfans who normally defend the brand like a religion are taking a step back to analyze what they actually got. The consensus is that the price point of the cars didn’t just miss the mark, but is an awful value for anybody looking to get into a new Tesla today.
“[C]oming from a huge Tesla fan and investor, mostly always positive about their decisions,” posted one user. “But this is a bit of a disappointment, nobody financing at this price is gonna give up that many features for a 5k discount, doesn’t make any sense to me at all.”
“The more you take away, the more people run away,” wrote another, pointing out Tesla’s already minimalist design.
“Model Trash,” wrote another.
More criticism was posted on Reddit. The various Tesla Subreddits (some of which are typically pro-Tesla to a fault) were filled with users slamming changes that make little to no sense.
For example, the rear cup holders on the Model Y are baked into the back of the center seat—not only does the cup holder sit at an angle (meaning that it seems pretty easy to spill liquid once you hit the accelerator), but there’s nothing keeping anything stored in the rear hatch area from slamming into the cups if the driver hits the brakes abruptly.
Others questioned why Tesla kept the glass roof on the Model Y and just slapped a headliner over it. Tesla is notorious for this kind of thing, though. Historically, it has installed speakers and footwell lights in the partial premium interior of the Model 3, but didn’t activate them in lower trims. You can quickly see where this line of questioning is going.
YouTubers have also done a great job at showing off some of the less documented changes to the Standard trim.
One reviewer found that the Model Y Standard’s frunk plastics have been completely trimmed back to expose a significant amount of the bodywork underneath and trim down the available storage size. Tesla has also foregone wrapping certain interior trim pieces in carpet (like the door inserts, trunk plastics and glove box), which is said to result in more road noise. The reclining feature for the rear seats is now completely inaccessible from the car’s hatch—no manual or electronic release exists.
Speaking of seats, the front seats are still power-operated. However, all adjustments must be made from the screen. Tesla also removed the pockets on the rear of the seats, one of the USB-C ports from the center console, the rear coat hangers, and even one of the rubber bump-stops that make contact with the hatch to cut down on costs.
Let’s talk about the value proposition for a moment. The new Standard trims of the Model 3 and Model Y are discounted by $5,500 and $5,000 (respectively), or between 11% and 13%.
Buyers of the cheaper Model 3 and Y will pay $98.50 per month less over the life of a 60-month auto loan (assuming an average prime APR for a new car of 6.78%). For many folks $100 per month is a big deal. But what buyers lose for that $100, especially on the Model Y, could make the car a very poor value for the money—and that’s the biggest issue that critics have.
Here’s a comparison showing how the Standard and RWD models stack up across the Model 3 and Model Y.
Analysts have also expressed disappointment in the car’s pricing.
“[W]e are relatively disappointed with this launch as the price point is only $5k lower than prior Model 3’s and Y’s,” Wedbush’s Dan Ives, a reliable and longtime Tesla bull, wrote in a note. He continued: “While some might have been hoping for […] a lower price point, we believe this is a step in the right direction and any knee-jerk reaction should present a buying opportunity to get into Tesla’s autonomous path forward.”
Some speculate that Tesla is having a “movie theater popcorn” moment—$10 for the medium size, or $11 for the large. And at a price difference of around $5,000, the trim positioned directly above the Standard makes a lot more sense for those wanting a bit more creature comforts in their car.
Where the Model 3 and Y Standard might make more sense is within fleets. $5,000 starts to add up when it comes to businesses that want to move towards EVs. I’d say even for rental companies, but some of the largest rental firms seem to have sworn off Tesla already due to depreciation and repair costs.
Many users are pointing out that the best Tesla for the money is a used one. They might not be wrong, either.
Tesla values have historically tanked three times faster than any other brand, meaning that buyers can buy a slightly used version for a similar price—albeit not from Tesla, as its current used inventory appears to price all used 2024 and up Model 3 RWDs above the cost of the Model 3 Standard. There are similar cars sold on third-party sites starting at $27,000, and if you’re willing to go with a pre-facelift 2023, can be had under $21,000.
Is Tesla really out of pocket with how it priced the Model 3 and Model Y standard, or are consumers asking the automaker to squeeze water out of a rocket by demanding a lower price?
It could be that the Model 3 and Y are really starting to show their age, or maybe Tesla should have released this car before the U.S. got rid of the EV tax credit—after all, it becomes a much easier sell at $29,490 and $32,490.
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