Tesla's stripped-back standard models bring the Model 3 and Y back under $40,000

Tesla has been promising less expensive versions of its electric vehicles for several months, and today the company introduced two 'standard' models. The Standard Model 3 sedan will retail starting at $36,990 and the Standard Model Y SUV will start at $39,990. While these price tags make Tesla EVs available for less than $40,000, the cost is still not down to the $35,000 level that the company once briefly had for the Model 3.

Although the price tags seem lower, the US ended its federal tax incentive for EVs on September 30. That offered buyers a savings of $7,500 on purchases of electric vehicles. These Standard models effectively cost about $2,000 more than the old spec, now called 'Premium,' would have retailed for last week.

Both have an EPA estimated range of 321 miles on a full battery. However, these Standard versions will also ...