The Tesla Model Y and Model 3 Standard Are Cheaper—but Still Not Cheap

For nearly two decades, CEO Elon Musk has promised Tesla would make a more affordable electric vehicle, to, as he put it in 2006, “help expedite the move from a mine-and-burn hydrocarbon economy towards a solar electric economy.” Is it finally here? Kinda, sorta.

On Tuesday, Tesla announced a new Model Y and Model 3 Standard, versions of its popular compact SUV and sedan stripped of a few higher-end touches and features to bring the price down to $39,990 and $36,990, respectively. They’re both about $5,000 cheaper than the Premium variants, which goes a ways—but not all the way—toward recouping the $7,500 tax credit canceled by the GOP-led Congress this past summer.

The price point also puts Tesla’s newest models firmly in the “more affordable” EV camp. The average transaction price for electric vehicles last month was over $57,000, according to ...