Is the Cheaper 2026 Tesla Model Y Worth Your Consideration?
Key Points
- The new Tesla Model Y Standard is $5,000 less expensive than the prior base version.
- The Standard version has lower estimated range, is slower to 60 mph and goes without some convenience features.
- Tesla isn’t the only EV maker dropping prices now that the federal EV tax credit has been eliminated, with Hyundai recently dropping the price of the 2026 Ioniq 5.
Tesla recently updated its Model Y SUV for the 2026 model year, and today it revealed a lower-priced base trim dubbed Standard that cuts $5,000 off the previous starting price, making the new base price now $41,630 (including destination and order fee).
Related: Should Tesla Model Y Owners Get the New 2026?
The new Standard Model Y also cuts other things, like estimated driving range and 0-60 mph acceleration, and it either does without a number of features present in the Premium trim (formerly the Long Range) or downgrades things in exchange for less expensive substitutes.
What the Standard Model Y Gives Up
- Estimated driving range drops 36 miles, to 321 miles
- 0-60 mph acceleration drops 1.4 seconds, to 6.8 seconds
- Three color choices (gray, white and black) instead of six
- 18-inch wheels standard instead of 19-inch rims
- No adaptive high beams or light bar between the front and rear lights
- Seven-speaker stereo instead of 16-speaker system
- No FM radio
- No second-row 8-inch touchscreen
- No interior ambient lighting
- Manually adjustable steering wheel instead of power-adjustable
- No Bioweapon Defense Mode
- No ventilated front seats or heated second-row seats
- No power-folding second-row seats
- No power-folding and auto-dimming side mirrors
- No frequency-dependent shocks
- No Autosteer feature
That’s a lot of missing features, but it’s worth noting that the previous base 2026 Model Y was a well-equipped car, and the new Standard version still comes with convenience features like dual wireless phone chargers, a hands-free power liftgate, heated steering wheel, heated front seats and blind spot warning.
Operating in a New EV Environment
The elimination of the $7,500 federal EV tax credit as of Sept. 30 means that a significant discount that was previously available to Model Y buyers is no more. The new Standard variant takes away some of the sting of not being able to claim a $7,500 discount, but it comes at the expense of a lot of convenience features as well as capability that’s helped set the Model Y apart from the competition. It’s historically been the fun-to-drive go-kart of electric SUVs, but a 6.8-second 0-60 time doesn’t really jibe with that sentiment.
What’s more, the new Standard version of the Model Y seems to do nothing to address some of our prime complaints with the SUV, like its poor rearward visibility and Tesla’s continued refusal to include Apple CarPlay and Android Auto connectivity. It’s possible the smaller 18-inch wheels have a positive effect on ride comfort, another area where the Model Y has underwhelmed, but we won’t know how the wheels and new conventional shocks affect ride quality until we drive it.
It’s also important to note that Tesla isn’t the only EV maker dropping prices now that the federal EV tax credit is gone. Hyundai recently announced that the 2026 Hyundai Ioniq 5, a direct competitor to the Model Y, now starts at $36,600 for the base standard-range SE trim, or $39,100 for the regular SE version, which has driving range that’s more comparable to the new Model Y Standard.
In both cases, however, these new lower-priced EVs have the potential to make more shoppers consider going electric with their next new-car purchase, as price-of-entry becomes less of a barrier to EV ownership.
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