On April 19, 2025, Reuters reported that Tesla is developing a “bare-bones” version of the Model 3 expected to become its new entry-level car.
While the article did not elaborate and Tesla hasn’t responded to the report, we think that the simplified Model 3 will aim to expand Tesla’s global sales volume by targeting budget-conscious buyers who aspire to own a Tesla. Demand for electric vehicles is cooling in many markets, which leaves Tesla eager to find a growth path with a more affordable product.
1. Basic Interior
Details aren’t available, but having spent a fair share of time around the newer and older variants of the Model 3 and Model Y, the basic version should come without premium features such as advanced autopilot functionality, glass roof, power-folding or ventilated seats, rear touchscreen, dual-zone air conditioning, and high-end infotainment options.
Tesla will likely simplify exterior trims, wheels, and paint options to focus strictly on essentials, while cutting back on sound insulation. However, Tesla’s chief designer, Franz von Holzhausen, hinted to the Ride The Lightning podcast that its future entry-level products would not feel cheap or rely on cheap plastics, and would be designed to feel premium for their price.
2. LFP Battery
The vehicle should use a single-motor drivetrain with LFP battery to cut costs further. Additionally, we’re expecting 15-20% lower range compared to the 2025 Model 3, which travels up to 363 miles. Buyers could potentially add extra range or performance by paying extra, but we don’t see long-range or performance variants planned for this configuration.
3. Standard Range Model
Tesla previously experimented with a Model 3 Standard Range in 2019, which was discontinued in 2024 as imported LFP batteries did not qualify for subsidies, and demand leaned more towards the long-range models. However, battery costs are steadily declining, and Tesla’s plants in Texas, Germany, and China should have learned to churn out vehicles even more efficiently, which we also see as reasons for them attempting another lower-priced model.
4. Sub-$35,000 Pricing
The entry-level Model 3 should target a price point under USD 35,000, significantly below the current base price of USD 42,490. If achieved, this pricing would position Tesla to compete directly against budget-focused EV brands like BYD, Hyundai, and even Chevrolet.
There’s no information on the production of the “bare-bones” Model 3, but there’s no reason for Tesla to limit its availability to just one continent. If it can source LFP batteries cheaply and at scale from within the U.S., it could market it as an entry-level car stateside. That said, the stripped-down Model 3 should primarily help Tesla’s sales volumes in markets sensitive to pricing.
Featured image: TopElectricSUV’s illustration of a future Model 3 variant
An automobile engineer by training, I’ve analyzed the global car market since 2005, with a keen focus on EVs since 2008. My journey in online automotive publishing spans 17 years, during which I have reviewed cutting-edge automotive technologies and interviewed leading global CEOs and vehicle developers.
