Tesla begins production of lower cost EV, with first customer deliveries imminent

Tesla has begun production of the  new “affordable” versions of its Model Y and Model 3 electric cars in the US, which were finally unveiled a fortnight ago with price reductions of up to 14 per cent off base prices.

In new drone footage from a Texas-based drone operator and factory build enthusiast, Joe Tegtmeyer, newly produced Standard Model Y vehicles are found in the post-production outbound car park of Tesla’s biggest factory in Austin, Texas.

This hints that these vehicles are ready to be delivered to stores or directly to customers, marking a key milestone for the brand, as it looks to open up more segments of the market with cheaper models.

During this sighting, various Standard variants of the Model Y in white are seen with their boot lids and frunks open, indicating final checks before the car leaves the lot. 

These models are quite easy to spot with their new exterior design, which removes the full-width lightbar seen in the refreshed Model Y (now known as the Premium variant in the US and parts of Europe) and is available for sale.

The Model Y Standard comes with 18-inch wheels hidden away under the aerocovers. Styling for this car is similar to the current lineup, although the Model Y Standard has a more Model 3 like headlights.

One major change is that the glass roof is closed off on the inside with a fabric, in line with the rest of the interior. 

On the inside, these base models cut costs by having textile for seating, manual adjustments, a  7-speaker audio, and no rear screen, but they retain Hardware 4 for FSD Supervised capabilities and a front bumper camera.

Other specs worth noting is the towing capacity of the Model Y, which is rated at around 1,600 kg, similar to the RWD Model Y offered in our market.

When these new affordable models were announced on a post on X, Tesla revealed that both will start under $US40,000, priced from $US36,990 for the Model 3 and $US39,990 for the Model Y.

These prices are 14 per cent below the previous base RWD Model 3, and 11 per cent down from the RWD Model Y in the US.

Within a couple of days of that reveal in the US, the company swiftly launched the Model Y Standard in multiple European countries, revealing pricing and specs.

Pricing in multiple countries started at €39,990, which sits under the previous RWD model which is priced from €49,990, a drop of over 20 per cent.

With the latest production well underway in the US and Europe not too far behind, these models could help bring new customers to the brand, including price-sensitive fleet buyers in some markets.

Whether it goes that way or not, time will tell, but for now, the leading EV brand in the US is aiming to produce cars as quickly as the market will take them.