Tesla Launches Cheaper Model 3 And Y Amid Renault Dacia’s $17.7K EV Prototype

Just days after Tesla reported its best-ever sales quarter—which included producing over 447,000 vehicles and delivering over 497,000 vehicles in 2025’s third quarter, most of which were Model 3 and Model Y—the automaker has now unveiled more affordable versions of its highest-selling electric vehicle (EV) models.

The new iterations are called “Standard” models and come with fewer features than the more premium versions of the car and start at $36,990 for the Model 3 sedan and $39,990 for the Model Y SUV.

Other cuts include the removal of second-row touchscreens, manually adjusted steering wheels and side mirrors, no FM/AM radio, 7 speakers (with one subwoofer) instead of the 15 available in higher versions, and heated seats only for the first row, among more trims.

They won’t even sport Tesla’s basic advanced driver assistance system, Autopilot. It does, though, come with traffic-aware cruise control and offers an estimated 321 miles of range on a full battery.

The move comes as the United States government discontinued the $7,500 federal EV tax credit—which is also believed to be a key reason for Tesla’s sales surge, which witnessed a 29% growth from the previous quarter.

However, despite the lowered prices, the new models and their revised prices failed to impress the market and the company’s investors, resulting in a drop of 4.5% in Tesla’s stock.

One of the reasons for the disappointment was that the new models are just about $5,000 less than the next-level versions—the EV tax credit itself was worth $7,500.

Furthermore, Tesla has long flirted with promises of EVs costing $35,000, as well as a vision by CEO Elon Musk that teased $25,000 Teslas (which was eventually cancelled), neither of which the company has delivered on.

Tesla is already facing stiff competition worldwide from Chinese brands that offer cheaper EVs, and to make matters worse, French automaker Renault has swung in with an EV costing just $17,625.

In all fairness, Renault’s low-cost brand Dacia introduced a prototype mini car that could cost less than 15,000 euros ($17,625).

Dacia’s “Hipster Concept” is 3 meters (9.84 ft) long and weighs under 800 kg (1,763.7 lb.) and is expected to go into production if the European Union agrees to create a new small car category.

It’s 100% electric, can seat four passengers easily, and imbibes a BYOD (Bring Your Own Device) philosophy where a driver’s smartphone acts as a digital key to unlock and start the car, as well as the in-car multimedia screen and navigation device.

Boot space varies depending on the number of people seated. With four people, the Hipster offers 70 liters, while with two people, it boasts a massive 500 liters.

“This is the most Dacia-esque project I have ever worked on. It has the same societal impact as the Logan did 20 years ago. And it involves inventing something that does not exist today,” said Romain Gauvin, Head of Advanced Design & Exterior Design at Dacia.


These developments come as the U.S. Department of Energy is looking to make massive cuts in federal funding, spanning billions, which could affect various startups and established automakers, as per a report from TechCrunch that cites an internal document that has not become public yet.

These cuts could cancel over $500 million of contracts that were awarded to more than a dozen startups, adding to previously announced contract cuts worth $7.5 billion.

Awarded under the Bipartisan Infrastructure Law, the new cuts could see the operations of startups affected in a big way, while major companies could lose grants worth hundreds of millions of dollars. This includes the likes of Daimler Trucks North America, Ford, General Motors, Harley-Davidson, Mercedes-Benz Vans, Stellantis, and Volvo Technology of America.

As per the report, General Motors could stand to lose at least $500 million in grant money issued from a federal Domestic Manufacturing Conversion Grant program, which was expected to be used to retool the Lansing Grand River Assembly Plant in Michigan.

Others affected include Anovion, which is a producer of synthetic graphite that’s used in lithium-ion batteries—the graphite market is currently dominated by Chinese companies; Li Industries, which recycles LFP batteries; and a range of cement startups, building materials companies, energy companies, and more.

Ultimately, these cuts could hurt EV companies, affecting operations, production, expansion, battery manufacturing, and more.

Do you think Tesla's moves will help it capture a stronger position in the EV sector, or will Renault Dacia's new concept car inspire stiffer competition and spur other automakers to build similar EVs?

Let us know in the comments below!