Tesla's Standard Model Y and Model 3 are more insulting than innovative

By now, you’ve probably heard that Tesla has finally debuted its “more affordable” Model 3 and Model Y variants. Referred to as Standards, these models have smaller batteries and a little less range. Additionally, there’s been some de-contenting to bring the price down.

This de-contenting is more cynical than practical, and while there are some interesting things happening here, Tesla is in trouble if this is the best they can do (especially in an upcoming EV price war).

Let’s take a look at what you lose, or what’s different, in the Standard versions of the cars. I’m going to talk about the Y, but the changes in the 3 are nearly identical.

Some of these changes are actually better than the upgrading models. For example, a manual adjustable steering wheel means you don’t have to fiddle with the touch screen and the rolling buttons on the wheel to adjust the position. It’s quicker, and less likely to mess up.

The same goes for the manual vents in the rear. All vents on all cars should be manually operated, because it’s way easier to point a manual vent where you want it than to futz around with an infotainment screen.

Some of the changes make sense to lower cost, like the deletion of the rear seat touchscreen, yanking the ventilated seats, and pulling the antenna for the AM/FM radio.

Some of the changes make the car worse, like cheapening out on the suspension on a car that already has notoriously bad ride quality (just ride in an Uber Model Y and try not to get carsick).

And then there are at least two changes that are a cynical ploy to force you to grade walk up to a higher-spec.

Using a base trim as a motivator to upgrade a person in the showroom is hardly a new concept, and keen readers of this publication can likely cite many examples. But I’d argue that these two are some of the most egregious, non-customer-focused, greedy, and unsafe changes to make for the sole purpose of “encouraging” someone to upgrade.

First, let’s talk about the lack of Autosteer. Autosteer is Tesla’s terminology for lane centering, and it’s a feature that comes on practically every new car. Kudos to Toyota for being one of the first automakers to offer all of its safety tech as standard, but now it’s something that you should just expect on a new car.

Tesla’s driver-assistance system is 100% camera-based, and the cameras are in the car. I know this because you can still pay to upgrade to “Full Self Driving” in the Standard trim. Additionally, adaptive cruise control is still standard.

Tesla intentionally omitted several lines of code (maybe to try to sell as an OTA update later) to make the car less appealing, but in reality it also made it less safe. But Tesla door handles are already a safety problem.

Secondly, the “Closed glass roof” is absurd. Tesla builds every car, including these new ones, with the panoramic glass roof. However, on the base car the company adds a headliner which completely blocks the glass roof. If you’re sitting in the car, you’d have no idea you have a glass roof.

But in a hail storm, you’ll be reminded you have a glass roof fairly quickly.

So why do this? Isn’t adding a headliner to a car more expensive?

Yes. Yes it is.

Tesla likely wanted to delete the roof for the Standard version, but designing and stamping a new roof panel costs a lot of money. It also means the car might behave differently in a crash, affecting the safety of the car.

Keeping the glass roof then makes sense. But you can’t let the cheap customers enjoy a glass roof, so a headliner is put in. It’s a money-driven, cynical ploy to make people feel like they are buying the poor-person’s version and pay for the upgrade.

The plus side here is if you get one of these new cars and keep it a long time, the headliner will certainly fall apart and you’ll have a glass roof. Free upgrade!

To be clear, if any other automaker pulled this level of crap I’d eviscerate them, too. I get that product planning is challenging, that things cost money, and that automakers need to make money. But this decision, and the Autosteer decision, is a giant middle finger to the customer.

A customer that Tesla desperately needs, now that the tax incentive is gone and that it can’t sell emissions credits to other OEMs.

The price cut isn’t big enough, the stuff that Tesla cut makes the car objectively worse, and it’s more a ploy to get you to pay for the upgrade than to actually sell you a car.

The lineup is getting old, and these refreshes don’t help much. I’m also not the only one to think so. Combined with aggressive pricing from Hyundai, and Nissan’s new Leaf (and the litany of other affordable EVs coming), Tesla doesn’t have the first mover or market advantage.

If Elon Musk thinks he deserves that $1 trillion pay package, he’s going to need to figure that out pretty quick.