We drive the cheapest Tesla Model Y - can the new £42k 'Standard' fix the brand's reputation and reverse its sales slump?
- by thisismoney
- Jan 24, 2026
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After a year when Tesla was never far from the headlines - whether that was due to lower than expected sales or owners plastering 'I bought this before Elon went crazy' stickers on their electric cars - 2026 marks a fresh 12-month period in which the embattled EV maker can do some serious brand rehabilitation.
Enter the Tesla Model Y Standard - the new cut-price version of its best-selling Model Y SUV designed to coax EV enthusiasts into Tesla ownership, no matter their opinion of a certain Mr Musk.
It finally delivers on Elon's half-a-decade-old promise that a more affordable Tesla would emerge to cater for cost-conscious buyers - though at £41,990 it isn't what you'd exactly call 'cheap'.
The SUV arrives after Tesla announced its Master Plan IV in September - a move towards 'sustainable abundance' and becoming an energy retailer - and where car, energy, insurance, personal chauffeur are all available on Tesla.com.
Unveiled in early December, the electric SUV marks the new entry-point in the Model Y range without compromising on all things that makes a Tesla a Tesla: tech, range, efficiency, minimalist interior and practicality.
With a £7,000 saving on the normal Model Y, is the Standard tempting enough to help turn around the car maker's fortunes? Motoring reporter Freda Lewis-Stempel drove it in the Cotswolds to find out...
Tesla's new Model Y Standard reduces the upfront cost of owning a Model Y by £7,000. It is part of Tesla's new direction which will see the brand lean into being an energy provider, and offer customers more affordable cars. But what did we think of it when we got behind the wheel?
What are the noticeable differences with the Model Y Standard?
Not many, in all honestly. And that alone is an impressive feat.
At no point during my test drive did I think this is a noticeably downgraded car, insider or out.
To the untrained eye, the discernible exterior changes are the headlights and rear lights; the full-width front and rear light bars from the 2025 Model Y have been replaced by slinky - and cheaper to manufacture - individual light clusters.
The panoramic roof hasn't been replaced - but it is no longer visible. It is still there (because of the structural strength of the glass) but there is a fabric roof inside now, concealing it from view.
Apart from these small changes, the Model Y Standard does, as Tesla promises, retain 'all the features customers love'.
Inside the Standard changes are minimal: the panoramic roof has gone and the interior faux leather has been replaced with cloth. But you gain a centre console and have all the same tech
Exterior tweaks to the Model Y Standard are very minimal with only the headlights and a body panel or two changed
Inside, you get the same 15.4-inch touchscreen, the same practicality - a 835-litre boot which increases to 2,118 litres with the rear seats folded - and even an extra centre console-style storage facility in the front.
The key interior difference is the new textile and vegan leather seats, rather than the full vegan leather of the conventional Model Y.
That made little difference to the feel of the car, in my opinion.
Really, there's not much room for grumbling that Tesla has cut corners to slash pricing - everything Model Y you want is still there.
Tesla has lowered the cost of ownership long term by making tweaks to the Standard that means it falls into a lower insurance group (34). It also has better residual value and is more efficient reducing running costs
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