How Tesla’s Standard models will help deliveries despite price disappointment

When Tesla unveiled its Standard versions of the Model 3 and Model Y this week, reactions were mixed. Many liked the addition of two new models, but they were also concerned about the price.

“What a giant miss,” one person said.

“With all due respect, no way is this what y’all have been hyping for 6 quarters…” another one claimed.

“So…where are the affordable models?” another reply read.

Tesla launches two new affordable models with ‘Standard’ Model 3, Y offerings

There’s no arguing it: $36,990 and $39,990 for the Model 3 Standard and Model Y Standard were not what consumers had in mind.

But, despite Tesla getting its new offerings to a price that is not necessarily as low as many expected, the two cars still have a chance to assist with quarterly deliveries.

Here’s how:

First-time Tesla buyers will lean toward Standard models

Tesla owners have become accustomed to expecting all the bells and whistles in their cars. Heated seats, ventilated seats, acoustic glass, vegan leather, industry-leading performance, world-class range, and a glass roof are all expected by current or past owners.

But what about new owners?

New owners do not have these high expectations, so to many of those who have not sat in a Tesla or driven one before, they are going to be blown away by the minimalistic looks, capabilities, and features of the Standard models.

The Premium models will feel like the high-end offerings that other automakers also have for sale, except they’ll only be a few thousand dollars more than Tesla’s base models. With other companies, the price for these higher-end trims is $10,000 or more.

The more affordable Standard models will be there, but if buyers want the extra features, they’ll likely be able to justify the extra few thousand dollars.

Tesla’s Standard Models fall under the U.S. Average Transaction Price

Kelley Blue Book releases a new report each month showing the average transaction price (ATP) of all vehicles sold in the U.S. for that month.

The latest report, released on September 10 for the month of August, revealed an ATP of $49,077. This was up 0.5% from July ($48,841) and higher year over year by 2.6%.

Technically, Tesla’s new Standard models fall well under that ATP, meaning they technically do qualify as “affordable.” However, realistically speaking, affordable does not mean “under the national average.”

It means accessible for low-income families, single-parent households, and other groups. This would likely be under $30,000.

Déjà Vu with the Cybertruck Rear-Wheel-Drive

When Tesla offered the Cybertruck RWD, it stripped out many of the best features of the Cybertruck, such as the adjustable air suspension, powered tonneau cover, and interior materials, just to name a few.

It was $10,000 less than the Cybertruck AWD, but many people essentially viewed it as a way to push consumers toward the more expensive variants, since the discount was a better value than missing out on features.

Tesla released the Cybertruck RWD to make the AWD look like a deal

Something similar could happen with the Standard models. With it only being a few thousand dollars less than the Premium Model 3 and Model Y, some consumers will see it as a better option to go with the more expensive trim levels.

Even if they don’t, many car buyers will see it as a deal to grab the Standard versions.

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