Tesla has officially launched its affordable models with the new Model 3 and Model Y ‘Standard’ versions hitting the company’s Online Design Studio on Tuesday.

It is the first time Tesla has revealed any details about what it planned to launch in terms of its new, lower-cost vehicles, which are mainly aimed at countering the loss of the $7,500 EV tax credit.

Here’s what Tesla went with for its release of the new affordable models.

Tesla Model Y ‘Standard’

The Model Y Standard is a stripped-down version of the all-electric crossover and starts at $39,990.

Deliveries are slated for November and December, the company says if you plan to order one, and it comes with a few major changes to improve efficiency and bring down cost for owners.

• New athletically tuned exterior and new alloy wheels to improve aerodynamics
• 15.4″ touchscreen in the front, the same as the other trims
• Available in three colors: Stealth Grey (free), White ($1,oo0 extra), Diamond Black ($1,500 extra)
• Textile and vegan leather interior
• Range sits at 321 miles
• New front fascia
• Covered glass roof (textile on inside)
• Windows are not acoustically laminated for a quieter cabin
• Manual mirrors and seats
• Smaller frunk
• No rear infotainment screen
• No basic Autopilot
• 69 kWh battery
• New 19″ Aperture wheels
• 0-60 MPH in 6.8 seconds
• 7 speaker stereo, down from 15 speakers in premium models

🚨 BREAKING: Tesla has launched the new Model Y ‘Standard’ for $39,990

Here’s what’s new: 🧵 pic.twitter.com/ILxbEsEniX

— TESLARATI (@Teslarati) October 7, 2025

Tesla Model 3 ‘Standard’

The Model 3 Standard was a surprise offering from Tesla, as many had only anticipated the company to refine and offer a more affordable version of the Model Y.

Coming in at $36,990, it features many of the same changes Tesla made with the Model Y “Standard,” all ways to improve price and make it less flashy than the more premium offerings.

Deliveries are also slated for November for this vehicle, and it features relatively the same stripped-down offerings as the Model Y Standard.

• Available in three colors: Stealth Grey (free), White ($1,oo0 extra), Diamond Black ($1,500 extra)
• Textile and vegan leather interior
• Range sits at 321 miles
• Covered glass roof (textile on inside)
• Manual mirrors and seats
• No rear infotainment screen
• No basic Autopilot
• 69 kWh battery
• New 19″ Aperture wheels
• 0-60 MPH in 6.8 seconds
• 7 speaker stereo, down from 15 speakers in premium models

@teslarati 🚨 Tesla’s Affordable Models are here! Let’s talk about them! #tesla #fyp #viral #teslaev #elonmusk ♬ Natural Emotions – Muspace Lofi

Tesla owners with access to the company’s Full Self-Driving new version, v14, which rolled out on Tuesday morning, are showcasing some of the very impressive improvements that have arrived.

CEO Elon Musk called v14 “sentient” a few weeks ahead of its rollout, claiming the newest iteration of the company’s Full Self-Driving platform would be the most accurate to date.

Tesla FSD (Supervised) V14.1 with Robotaxi-style dropoffs is here

It was obvious this narrative had Tesla owners keeping their expectations high, as there were very evidently things that needed to be improved upon that were present in v13. I wrote about several improvements I was hoping to see, and based on the release notes for v14, Tesla did have these things in the works already.

Some of the big things that Tesla faced head-on with the development and release of v14 were navigating in parking garages and handling parking after arriving at a destination.

Tesla said it was working to increase the capabilities of Summon within parking garages, as many owners believe that is where it would be the most beneficial.

While that does not appear to be part of this initial v14 rollout, it does seem Tesla is focused on improving the suite’s ability to navigate through these garages, including stopping for a ticket to enter the facility, finding a spot, and parking in an appropriate space.

It was evident this was a huge improvement based on one example from an owner who received v14:

FSD v14 navigates parking garages really well. Here’s a full clip of it leaving a parking spot, going through the garage, waiting for me to put the ticket in, and exiting.

Almost feels like it can read the signs above to go find the exit, with a complex garage here.@Tesla_AI pic.twitter.com/fv9j6LNcp6

— Zack (@BLKMDL3) October 7, 2025

If you look closely, you will even see the car shift slightly to the right when it arrives at the ticketing station, making it easier for the driver to hand over their ticket and payment. It then moves back out to the right when leaving to return to the center of the lane. It’s very intuitive.

Additionally, it appears to be more accurate when parking, thanks to improvements that enable owners to select the type of parking upon arrival at a destination.

In the v14.1 release notes, Tesla said that it has added “Arrival Options for you to select where FSD should park: in a Parking Lot, on the Street, in a Driveway, in a Parking Garage, or at the Curbside.”

One owner chose to navigate home and chose a garage to park in. Full Self-Driving performed it without any issues:

Not only can FSD 14.1 pull into my gravel driveway (no version before has done this) it can pull into the garage. pic.twitter.com/pweI5JKWHD

— Dirty Tesla (@DirtyTesLa) October 7, 2025

These are just two evident improvements so far, and there are likely many more on the way. The changes and fixes will be tracked by anyone with access to FSD v14 in the coming weeks.

Just a few days ago, Elon Musk shared a video of Tesla Optimus demonstrating some kung fu moves with a human partner. The video was impressive, though some were confused about why the Optimus team was busying itself with what appeared to be a cool but frivolous demonstration. 

With the premiere of TRON: ARES, we now know that Optimus’ kung fu demonstration was part of the robot’s preparations for the red carpet. 

Optimus “starts a fight”

As noted by X Business on its official account on the social media platform, the TRON: ARES red carpet world premiere was a showcase of today’s AI-powered technologies. With this in mind, xAI, X, Walt Disney, and Tesla collaborated to provide attendees with an immersive experience on real-world AI. This included Optimus engaging with attendees, and even distributing theater concessions. 

But one black and red painted Optimus unit definitely stole the show. The humanoid robot, in front of several attendees, attempted to “pick a fight” with Jared Leto, who starts in the movie alongside Greta Lee, Evan Peters, and Jeff Bridges. As could be seen in the video of Optimus, the robot’s moves in the red carpet were similar to the kung fu demonstration that Elon Musk showcased last week. 

TRON: ARES

Monique Pintarelli, Head of Americas at X, shared some insights about the event, which ended up being a collaboration of sorts between several Elon Musk-led companies. 

“This partnership with Disney lets fans and stars experience the world of TRON like never before – turning the red carpet event into a collision between the real world and AI. By leveraging X’s unparalleled real-time engagement and xAI’s cutting-edge technology alongside Tesla’s Optimus robots, we’re creating shared, immersive experiences that redefine storytelling,” the X executive noted.

TRON: ARES releases on U.S. theaters on October 10, 2025.