Tesla Launches a Lower-Priced, Simplified Model; Own a Model 3 for Under 200,000 Yuan?

On October 7 U.S. time, Tesla launched standard versions (i.e., downgraded versions) of its Model Y and Model 3 in the U.S. market. These models feature reduced configurations, with prices approximately 9% lower than the previous entry-level Rear-Wheel Drive versions—representing price cuts of about 11% and 13%, respectively.

​​What has been downgraded?​​

According to Tesla's U.S. website, the standard versions now come with a manually adjustable steering wheel, and exclude features such as rear entertainment screens, front seat ventilation, and other comfort and entertainment functions. The number of speakers has been reduced, and fabric seats are used instead of premium materials.

After these adjustments, the prices for the two standard models are set at 39,990(approximately¥240,000RMB)and36,990, respectively.

​​Price cuts aim to counter the impact of the U.S. eliminating EV incentives​​

Tesla’s introduction of these lower-priced versions is a strategic response to the discontinuation of the $7,500 federal tax credit for electric vehicle purchases in the U.S. This incentive was first introduced by the U.S. Congress in 2008.

Since 2008, the U.S. government has provided tax credits to consumers purchasing electric vehicles, with eligible vehicles qualifying for up to $7,500 per vehicle.

On September 30, the U.S. government ended this incentive program. As Tesla does not have a traditional gasoline vehicle business to fall back on, it is inevitably affected by this change.

​​Still expensive: Price reduction not significant enough​​

Compared to other models in the market, Tesla’s two lower-priced versions remain relatively high. For example, the Chevrolet Bolt starts at around $29,000. Regardless of pricing, Tesla has indeed been making efforts to boost sales recently, with quarterly deliveries recovering to the 500,000-unit level—a positive signal.

​​“Trading experience for lower prices” doesn’t feel like a good deal​​

While the prices have been reduced, the removal of key features gives the impression of "trading experience for lower prices." It doesn’t necessarily feel like a bargain; instead, it evokes a sense of paying nearly $40,000 for a "stripped-down" version.

Especially for those who have been following Tesla, this "downgrade and discount" strategy may come across as overly aggressive cost-cutting, potentially tarnishing Tesla’s reputation as a premium electric vehicle brand.

​​Tesla may launch "downgraded" models in Europe, uncertain for China​​

Since 2025, the European electric vehicle market has maintained rapid growth, but Tesla’s sales in Europe have been declining. Tesla hopes that these lower-priced models will help it overcome these challenges.

As for China, Tesla has not yet confirmed whether it will introduce "downgraded" versions in the market. If such models are launched, assuming a similar price reduction as in the U.S., the Model 3 Standard version could potentially be priced as low as around ¥200,000 RMB.

​​Brief Commentary:​​

Tesla has not simply trimmed non-essential features while preserving the core experience. Instead, it has removed many commonly used "standard configurations," such as rear heating, seat ventilation, and even replaced power adjustments for seats and steering wheels with manual ones. The removal of iconic design elements like the full-width light bar further diminishes the sense of refinement while driving or riding.

If your goal is simply to "drive a Tesla for under ¥200,000," these versions might suffice. However, if you’re looking for a well-balanced, comfortable vehicle with good value for money, these standard versions will likely leave you disappointed.This article is generated by Jiasou TideFlow AIGC GEO