With the Standard Model Y, Tesla does not fix any of its problems
- Published on 07/10/2025 23:01
- Modified on 07/10/2025 23:03
Promoted as very affordable, the Tesla Model Y Standard disappoints. Stripped down and expensive, who will it manage to attract? Chronicle of a failure?
All that for this? The reaction on Wall Street is severe, on the evening of October 7, 2025, with Tesla’s stock plunging by 4.5%. The markets reacted poorly to the launch of the Model Y Standard, criticizing its still too high price to effect a paradigm shift and reverse the sales trend, which is clearly declining.
Tesla’s promise was a SUV priced at $30,000 (excluding taxes). It ends up being $39,990, which is 25% more. The American manufacturer is criticized for its inability to reduce its production and technological costs to make this accessible—a feat Chinese companies know how to achieve. And that is the core issue!
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What is Tesla’s real problem?
Once a preferred brand among middle-class households, Tesla has become untouchable since its CEO, Elon Musk, ventured into politics, spreading divisive ideas. Price is therefore not Tesla’s primary issue; instead, it is the diversion of customers who no longer want to associate with a tarnished brand image.
By entering the low-cost segment, Tesla risks accelerating its downfall. Because in the affordable category, there will always be competitors stronger than Tesla. Just look to China. The opposite approach is needed: creating value and reigniting customers’ desire to buy Tesla. Perhaps even by replacing Musk to clear out the old and start fresh?
In Europe (where repeated references to Nazism are shocking) and in China (where Donald Trump’s diatribes strengthen patriotic sentiment), Tesla now suffers from a dreadful image.
When will Tesla be $25,000?
Wall Street is also concerned about the removal of the federal tax credit of $7,500, as of September 30, 2025, which was supposed to be offset by a Model Y Standard capable of compensating for this loss and maintaining sales. The fourth quarter looks set to be painful for Tesla.
Elon Musk persists, but the only way out is a small Tesla meeting everyday needs, fully equipped with technology and priced at around $25,000 (about €20,000).
In Europe, who will buy a Tesla Model Y Standard, drained of meaning, even grotesque with its 18-inch wheels, in exchange for a price increase of only 10%? In the US, the gamble might work because price is a top priority, and cars are mainly seen as simple means of transportation. It’s referred to as the “Toyota effect.”
After the Cybertruck, Tesla has probably made a second mistake with the Model Y Standard. Except this one could be even more damaging!
READ ALSO: Model Y / Model 3 Standard: Tesla has killed the Propulsion versions
This page is translated from the original post "Avec la Model Y Standard, Tesla ne règle aucun de ses problèmes" in French.
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