With the Model Y Standard, Tesla fixes none of its issues
This page is translated from the original post "Avec la Model Y Standard, Tesla ne règle aucun de ses problèmes" in French.
- 07/10/2025 23:01
Promised to be very affordable, the Tesla Model Y Standard disappoints. Stripped down and expensive, who will it manage to attract? Chronicle of a failure?
All this for what? The reaction on Wall Street is severe, on the evening of October 7, 2025, with a Tesla stock falling by 4.5%. Markets reacted badly to the launch of the Model Y Standard, criticizing its still too high price to signify a paradigm shift and reverse the declining sales trend.
The promise made by Tesla was a SUV priced at $30,000 (excluding taxes). It is ultimately $39,990, 25% more. The American manufacturer is criticized for its inability to reduce production and technological costs to make this accessible. Chinese companies are successfully doing so. And that’s where the core issue lies!
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What is Tesla’s real problem?
Once the preferred brand of 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—in contrast to the alienation of customers who no longer want to associate with a tarnished brand image.
However, by diving into low-cost markets, Tesla risks accelerating its decline. Because in the “cheap” segment, there will always be a player stronger than Tesla. Just look to China. Instead, value creation and rekindling customer interest in buying Tesla should be the strategy. Perhaps by removing Musk to clean up the brand?
In Europe (where references to Nazism are shocking) and in China (where Donald Trump’s tirades boost patriotic feelings), Tesla now suffers from a dreadful image.
When will Tesla hit $25,000?
Wall Street is also worried about the disappearance of the federal tax credit of $7,500, effective September 30, 2025, which was intended to be offset by the Model Y Standard, capable of compensating for the loss and maintaining sales. The fourth quarter looks likely to be painful for Tesla.
Elon Musk’s stubbornness persists, but the only way out may be a small Tesla that meets daily needs, equipped with advanced technology, and priced around $25,000 (about €20,000).
In Europe, who would buy a Tesla Model Y Standard, emptied of its purpose, even grotesque with its 18-inch wheels, in exchange for just a 10% price cut? In the U.S., the gamble could pay off because price is a Level 1 factor, with cars mainly seen as simple transportation. They talk about a “Toyota effect”.
After the Cybertruck, Tesla has probably made a second mistake with the Model Y Standard. But this one could be even more damaging!
READ ALSO: Model Y / Model 3 Standard: Tesla has killed the Propulsion versions
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