Electric vehicle shoppers are waking up to a new reality. With the federal EV tax credit now gone, many models have effectively become $7,500 more expensive overnight, whether bought outright or through the once-reliable lease loophole.

Read: Tesla’s Standard EVs Don’t Even Have A Radio, But Will You Care?

To soften the blow, several manufacturers are getting inventive, introducing aggressive discounts, cheaper trims, and in some cases, cutting slow-selling models altogether.

The end of the tax credit on September 30 led to a significant surge in EV sales across the United States; however, sales are expected to decline through the final quarter of the year. In a bid to try and prop up demand, Hyundai is offering a cash incentive worth up to $11,000 on the 2025 Ioniq 5.

Automakers Get Creative

Both General Motors and Ford have also been looking for ways to encourage shoppers to pick up the keys to one of their models.

For example, GM had been working on a plan for its lending arm to initiate the purchase of EVs at dealership lots and then apply for the $7,500 federal credit, rolling this money into lease terms for customers. However, it recently scrapped these plans, reports Reuters.

Nevertheless, it shows how creative some firms are getting to try and ensure EV sales don’t fall off a cliff. This week, Tesla also introduced lower-priced versions of the Model 3 and Model Y.

While both of these models were in the works before the Trump administration confirmed that the credit would be axed, they may help to convince some shoppers to buy an EV who would have otherwise been priced out of the market.

According to Ivan Drury, director of insights at Edmunds, automakers are taking varied approaches to a common problem.

“The overarching message of tax credits going away for EVs has had a very different set of approaches from each automaker,” he told Business Insider. “Which approach will be most successful? Debatable. Nobody’s looking to increase. That’s cuckoo talk at this point. You just want to maintain that basic level of sustainable sales, and this is the different methodologies that each of them have taken.”

Some brands have decided that cutting losses may be the most practical move. Both Stellantis and Acura have opted to discontinue certain EV models altogether. Acura recently confirmed it will pull the plug on its all-electric ZDX SUV, while Stellantis has shelved plans for the RAM 1500 REV.

It’s yet another reminder that even in an age of electrification, not every experiment makes it through the market’s growing pains.

Tesla’s latest move feels like a rare moment of self-awareness from a brand known for doubling down on its bad decisions. After years of criticism for removing traditional turn signal stalks from the Model 3, the company has finally relented and reintroduced them to the lineup.

What started as a questionable design experiment now has a costly fix, and this time, the solution comes straight from Tesla itself.

Read: Tesla Quietly Brings Back Turn Signal Stalks To Model 3 After Years Of Complaints

A couple of months ago, the carmaker started selling a turn signal stalk for its electric sedan in China, and last week, it introduced an updated Model 3 in select Asian markets that comes with the stalk as standard.

Sticker Shock

In the US, the stalk costs $595, which is the equivalent of 1.6 percent of the total purchase price of the new entry-level Model 3 Standard, though that one does include it.

That’s quite a lot of money, particularly since Tesla is only charging its Chinese customers 2,499 yuan, or around $350. Additionally, a small aftermarket startup, Enhance Auto, introduced its own turn signal stalks for the Model 3 last year and was able to price them between $343 and $363.

However, it’s important to note that Tesla doesn’t simply provide a signal stalk. Shoppers who make the purchase through the Tesla App will also receive a new steering wheel, which ditches the standard turn signal buttons.

Additionally, a new steering column control module has to be added to make the stalk functional. Installation fees are also included in the price.

Tesla says its retrofit package is compatible only with Model 3s built in 2024 and 2025 that were originally sold without a turn signal. From what we understand, the stalk is expected to return as standard equipment on all 2026 models, although that could vary depending on the production date.

While Tesla is unlikely to admit that ditching the turn signal stalk was a bad idea on the Model 3, the fact that the Model Y Juniper is sold with a stalk as standard tells us all we need to know. Tesla has clearly realized that it took minimalism a little too far.

It’s always amusing when we’re writing about collector cars to check the huge sums buyers paid out for optional equipment. Fifty years ago, for example, anyone buying a C3 Corvette had to pay a hilarious $284 ($1,710 in 2025 money) for an AM/FM radio, then a highly desirable and expensive option.

Today, though, it’s something that we expect to see on even the cheapest, most basic modern car. Yet, AM/FM radio is one of the pieces of equipment Tesla has cut from its new entry-level models.

Related: Analog AM Radios In EVs Could Cost Automakers Nearly $4 Billion

Called Standard, the new base Model 3 and Model Y are designed to keep the barrier to entry of Tesla’s EVs low in the wake of federal tax credits disappearing at the end of September.

The Model 3 Standard costs $36,990, against $42,490 for the next trim up, now renamed Model 3 Premium RWD. And the Model Y Standard comes in at $39,990, versus $44,990 for the Y Premium.

The lack of a radio is far from the only difference between the new Standard and Premium Models. Base 3s miss out on the 8-inch second-row touchscreen, ventilated front seats and heated rears, power door mirrors and steering column, Autosteer, and frequency-dependent shocks.

They also downgrade to simple 18-inch steel wheels with covers, need 5.8 seconds instead of 4.9 seconds to reach 60 mph (97 km/h), and the driving range is cut from 363 miles to 321 miles (584-517 km).

Wheels aside (and an upgrade to 19s is available), the Model 3 Standard doesn’t scream “I was too cheap to upgrade!” in the same way its Model Y counterpart does. Because the Y Standard loses the facelifted Y’s front and rear LED light bars, and Tesla covers over the panoramic glass roof (which, in the ultimate insult, is still present) with a conventional headliner.

It also downgrades to textile seat surfaces, loses the adaptive headlights, subwoofer, and HEPA filter, and misses out on various bits of the same kit omitted from the 3 Standard spec.

But performance takes a much bigger hit than it does in the sedan. The boggo Y needs 6.8 seconds to reach 60 mph compared with 5.4 seconds for the Premium, and the range is reduced from 357 to 321 miles (575-517 km).

Test drive reveals more missing features

YouTuber Everyday Chris got his hands on the new Model Y Standard and points out some other differences in his video, including the very basic frunk, trunk, and door pocket liners, lack of electric frunk opener and rear parcel shelf, the single-pane door glass, and the fact that the max charging speed is down from 250 kW to 225 kW. You can also no longer recline the second row of seats from the trunk.

We’re guessing most owners will be more frustrated by that trunk-folding button having disappeared than they are by the radio getting a bullet. Still, according to a 2023 study, cutting the AM unit could save Tesla around $50–70 per car, since it no longer needs to shield radio waves from interference created by the electric motors.

This cost has led several automakers to consider junking radios, though lawmakers want to make AM availability in cars a legal requirement, because it’s viewed as essential for drivers in rural areas. Would you care if your next car didn’t have a radio, or have you never used yours since 2004?

Tesla

For all of Elon Musk’s grand promises over the past couple of years about game-changing budget Teslas, the much-touted affordable models have arrived with more of a polite cough than a thunderclap.

As we expected after several leaks these past few weeks, the newcomer is essentially a heavily cost-cut version of the Model Y. Still, glance upward and you might realize that, in Tesla’s peculiar logic, less sometimes really does mean more. We’ll circle back to that soon.

Even so, Tesla slipped in a small surprise with the introduction of a lower-priced Model 3, both now bundled under the newly introduced “Standard” trim name.

Alongside these launches, Tesla has reshuffled its trim lineup. Entry-level versions now carry the Standard name, while the mid-range Long Range models have been renamed Premium. The Performance flagships of both cars remain in place at the top of the hierarchy.

Lower Prices, Leaner Package

The headline figures set the tone: the Model 3 Standard starts at $36,990, which is $5,500 less than the previous base Long Range RWD. The Model Y Standard begins at $39,990, a $5,000 reduction compared with its RWD Premium equivalent. These figures exclude delivery fees, of course.

Both models a single-motor, rear-wheel-drive setup and a smaller 69 kWh battery pack with one fewer module than usual.

Model Y Standard

Starting with the Model Y Standard, the range sits at an EPA-estimated 321 miles, a dip from the 357 miles offered by the RWD Premium. Acceleration is a lot slower too, hitting 60 mph (97 km/h) in 6.8 seconds with a rollout, versus the Premium’s 5.4-second run. Top speed remains unchanged at 125 mph.

Specs tell only half the story, though. Tesla has stripped away so much that the car now feels like something you’d leave in the economy lot after a long weekend in Vegas, drop the keys, and never think about again.

More: Teen Flunks Driver Test Because She Didn’t Use Her Tesla’s Brakes

The middle section of the lightbar has vanished, which isn’t exactly a bad thing. Some might even call it an improvement, if only by accident. The front bumper has been simplified too, with revised air inlets and lighting elements now integrated into the headlamps. Around the back, the Juniper’s trademark taillights drop their connecting center strip.

Elsewhere, new smaller 18-inch wheels come as standard, with a 19-inch option available. The simplified wheel covers might not win any style awards, but the extra tire sidewall should improve ride comfort. Color choices are limited to three: Stealth Grey as standard, plus Pearl White for $1,000 and Diamond Black for $1,500.

No FM/AM Radio And Downgraded Suspension

The biggest changes are found inside. The vegan leather seats have been swapped for textile inserts, and the center console now features a large open compartment reminiscent of the Cybertruck’s utilitarian layout.

Front seat ventilation and rear seat heating have been dropped, and rear passengers lose their 8-inch fun screen in favor of manual vents. The driver also gets a manually adjustable steering wheel instead of an electric one.

Digging a little deeper into the spec sheet uncovers several more omissions. Tesla has downgraded the audio system, fitting this version with seven speakers instead of the 15-speaker setup and subwoofer found in higher trims. The FM / AM radio is gone too, along with the HEPA filter and ‘Bioweapon Defense Mode’.

Even the side mirrors are now manually folded and no longer feature auto-dimming, while Autosteer has been removed. The second-row seats, power-operated in the other trims, are now manually folded. Ambient LED lighting and the double-pane windows have also been dropped.

Interestingly, there seems to be a suspension change as well. The Standard version now uses passive shock absorbers rather than the frequency-dependent units fitted to other models.

Once again, it raises the question of what other features might have quietly slipped away.

Now You See It, Now You Don’t

Look upward and you’ll spot the most obvious alteration. The Model Y Standard trades its see-through roof for a regular headliner with sound-absorbing material above it, something many Model Y owners have long wanted, albeit in the form of a retractable shade, not a full-on cover-up.

But appearances can be deceiving. The glass roof hasn’t gone anywhere, it’s simply hiding beneath the new headliner. Apparently, Tesla figured it was more cost-effective to leave the glass in place rather than invest the time and money needed to engineer a proper metal roof, which makes sense up to a point.

What’s less clear, unless there’s something we’re missing such as a switch to a cheaper type of glass, is why they went through the extra effort and expense of covering it at all. If the goal wasn’t cost-saving, it would have made more sense to leave it visible, as with the Model 3 Standard.

The only other plausible explanation might be differentiation from the other versions, or perhaps an attempt to offset the loss of the double-pane windows and maintain cabin quietness.

Everything else you love and loathe about the Model Y experience remains as is, from the 15.4-inch touchscreen that serves as both the instrument cluster and infotainment system to the steering stalks.

Model 3 Standard

Moving to the Model 3 Standard, the EPA estimates a 321-mile range, down from the RWD Premium’s 363 miles. The sedan sprints to 60 mph in 5.8 seconds with rollout and matches the same 125 mph top speed.

Visually, the exterior updates are more restrained than on the Model Y. There wasn’t much to take away to begin with, so the main differences come from the smaller 18-inch wheels that should offer a slightly comfier ride, with 19-inch options once again available. The same trio of paint choices carries over: standard grey, optional white, and black.

Also: California Threatens To Shut Down Tesla’s Insurance After Thousands Of Complaints

Inside, the cabin sticks to the same cost-cutting playbook as the Model Y Standard, though with one notable exception: the glass roof remains. Textile seats take the place of vegan leather, the steering wheel adjusts manually, the rear touchscreen has been deleted, and the audio system has been simplified.

All the other omissions noted on the Model Y Standard, including the change in shock absorbers, carry over here too.

However, for 2026, Tesla has reinstated the traditional turn signal stalks, while it appears that there’s a front camera too, so that’s something.

A tragic crash in North Miami Beach has reignited concerns about Tesla’s door and safety systems, after a Model 3 driver lost their life when the car caught fire and rescuers were reportedly unable to pull them out.

The incident adds to a growing list of cases where occupants were trapped following collisions, raising more questions about emergency access to the company’s vehicles.

More: Crash Victim Trapped In Burning Tesla Sues Over Door Handles

The crash unfolded just after 4 pm on Wednesday when the Model 3, heading west on Northwest 163rd Street, was said to have been cut off by an SUV. The Tesla allegedly swerved into a utility pole and almost immediately caught fire.

North Miami Beach police spokesman Corey Darden said officers arrived quickly but were unable to reach the driver before the flames spread beyond control. Paramedics also transported another person to the hospital, though their condition and role in the crash remain unclear.

Read: Trapped Children Die In Tesla Fire After Door Handles Allegedly Wouldn’t Open

Footage captured in the aftermath of the crash shows local police crews desperately trying to control the blaze using fire extinguishers.

At one stage, they could also be seen smashing one of the rear side windows, but according to an eyewitness, “it really didn’t do anything.” Police had to let fire crews take over due to the fear that the Tesla might explode, the Miami Herald reports.

What stands out in the aftermath is that the body damage to the Model 3 does not look especially severe. The front of the electric sedan is not visible in the footage, but the rear and sides show little sign of a major impact. It’s unclear what initially triggered the blaze.

A Wider Pattern Emerging?

This crash occurred just a week after a Tesla Model S driver and two children were killed in Germany when their vehicle veered off the side of a road and burst into flames. In that case, a witness desperately attempted to rescue the occupants but was unable to get the doors open before the vehicle was consumed.

Tesla has acknowledged concerns over emergency access in its vehicles and recently stated it is developing a new door handle design that merges manual and electronic releases into a single button.

Screenshot via Leandro Seguro/Local 10 News/Youtube

Tesla’s been having a terrible year, but there’s a bit of good news as third quarter deliveries climbed 7.4% from last year. That’s a sizable increase and it’s believed the recently expired clean vehicle tax credit played a significant role in driving consumers to showrooms.

Jumping right into the numbers, Tesla delivered 481,166 Model 3 and Model Y vehicles in the third quarter. That’s up from 439,975 last year, for an increase of 9.4%.

More: Tesla’s EV Market Share Just Sank Below 40%

However, it wasn’t all roses as the Model S, Model X, and Cybertruck continue to underperform. Q3 deliveries dropped from 22,915 units last year to 15,933 vehicles this time around.

In total, Tesla produced 447,450 vehicles and delivered 497,099. One year ago, the company made 469,796 EVs and only delivered 462,890.

2025 Q3 Tesla Production And Deliveries

Digging deeper, Tesla sales have rebounded significantly since Elon Musk’s disastrous foray into politics turned off a number of consumers. Compared to last quarter, deliveries soared an impressive 29.4%. The biggest boost came from the Model 3 and Y, which were up by 107,438 units. Deliveries of “other models” also grew by 53.3% as the company handed over 15,933 of them.

Of course, the sales bonanza is likely over now that the tax credit is dead. This means customers will need to shell out at least $42,490 for a Model 3 or $44,990 for the Model Y. Those prices will likely limit their appeal, although the company is working to address that with a cheaper Model Y.

They’re not the only ones working on more affordable EVs as Hyundai recently slashed prices for the 2026 Ioniq 5. The crossover starts at $35,000, which is $7,600 less than last year’s model. Other trims have steeper reductions and they average $9,155.

While most agree that the facelifted Model 3 that was unveiled two years ago is an improvement over the model it replaced, there’s one aspect that many dislike about the new model: the absence of a turn signal stalk. For some unexplained reason, Tesla decided to move the signals to the steering wheel. Others, like Ferrari, have done the same, but Elon Musk’s products are targeting a much wider audience.

Read: Tesla Quietly Brings Back Turn Signal Stalks To Model 3 After Years Of Complaints

However, much to our surprise, traditional stalks are making a comeback, but so far only on Asian-delivered Model 3s in three specific markets. This week, Tesla previewed an updated Model 3 that will be sold in Japan, South Korea, and Taiwan. In its promotional material, the brand revealed that the tweaked Model 3 includes a stalk for the turn signal positioned on the steering column, just as it should be.

A Quiet Reversal

The reappearance of the stalk isn’t entirely new. Beyond keeping them on the refreshed Model Y, Tesla also quietly brought it back for the Chinese-market Model 3 in August, even offering retrofits for older cars at 2,499 yuan, or about $350. This rollout now extends to three more countries, suggesting Tesla has fully reintroduced the hardware into its production line.

In addition to reintroducing a stalk for the Model 3 in Asia, the company has fitted a front-facing camera on the bumper. It’s a feature Tesla fans have been requesting for years, and it should make squeezing into tight spaces noticeably less stressful.

What About The US?

Despite those changes in cars sold in Asia, Tesla has yet to confirm if it will make the same small additions to American ones, but we think it’d be weird not to. Evidently, it has found suppliers for these parts and has all the tooling to install them, so it’ll simply be a matter of adding them to US-built cars.

🔥 Tesla has launched an updated Model 3 in select Asian countries, featuring:

✅ Front bumper camera
✅ Turn signal stalk
✅ No front logo

Available in:
🇯🇵 Japan
🇰🇷 South Korea
🇹🇼 Taiwan https://t.co/0B0coCN0pc pic.twitter.com/xQJmgMZlbV

— The Tesla Newswire (@TeslaNewswire) October 1, 2025

In August of 2019, a man driving his Ford Explorer Sport Trac was hit from behind by another driver in a 2019 Tesla Model 3 who was using Autopilot. The Ford’s driver lost control as the truck rolled and his 15-year-old son, who was not wearing a seatbelt, was ejected and killed. Just weeks before the case was set to go to trial, Tesla quietly settled the lawsuit that followed.

The Tesla driver, Romeo Yalung, was traveling at 69 mph (111 km/h) in lane three of Interstate 880 in California. Video from the EV shows the driver of the Ford, Benjamin Escudero, signaling and moving into the same lane ahead. Neither Yalung nor the Tesla, which had Autopilot engaged at the time, slowed down to avoid hitting the Ford.

More: Crash Victim Trapped In Burning Tesla Sues Over Door Handles

The lawsuit named multiple parties, not only Tesla and Yalung but also Yalung’s wife, who was in the passenger seat at the time. Over four years, Judge Rebekah Everson had the option to dismiss the case but allowed it to move forward. Now, with trial just a month away, Tesla has reached a settlement for an undisclosed amount.

That might seem like a shock considering some of the surrounding factors. Tesla has a largely victorious record in court when lawsuits about Autopilot or Full Self-Driving (Supervised) come up. Juries and judges have agreed in almost all cases that the person behind the wheel is responsible for driving and not Tesla. In addition, video of the tragic crash certainly calls into question Mr. Yalung’s attentiveness.

That said, this all comes after a Florida jury decided that Tesla was 33 percent liable for another fatal crash involving Autopilot. In that case, the driver of the Tesla hit two people on the side of the road, admitted fault to the police, and said that he wasn’t paying attention when the crash happened. Despite that, the jury awarded the plaintiffs $242 million.

Tesla is now appealing that verdict, but another loss in court could have been damaging. Settling this California case may have been a calculated move to avoid the risk of a repeat outcome.

Sources: Freightwaves, Carcomplaints

Throughout much of the year, Tesla sales have been on a downward spiral in many key markets, including Europe, the United States, and Australia. However, over in Japan, things are very different. In fact, throughout 2025, Tesla sales have jumped significantly, so much so that the American brand may soon surpass Nissan as the nation’s best-selling EV brand.

Read: Tesla’s European Sales Bloodbath Continues, But One Country Is Over Hating Musk

From January to August, approximately 6,590 new Teslas have been sold across Japan. This represents a massive 87 percent leap over the previous year, and has already topped the brand’s strongest year on record in Japan when it sold 5,900 vehicles in 2022. Tesla models proved particularly popular in August, with roughly 980 sales. That was more than double last August.

Closing in on Nissan

Year-to-date, Tesla is now only trailing Nissan by approximately 100 electric vehicle sales. Nissan has held the crown as Japan’s highest-seller of EVs for almost 15 years, reports Nikkei Asia, thanks to the Leaf.

Aggressive price cuts have contributed to Tesla’s surge in popularity. In May, it cut the price of the Model 3 by 453,000 yen (roughly $3,000), bringing its sticker price down to 3.99 million yen or $26,800. With government subsidies factored in, the actual outlay for buyers is even lower, which has helped broaden its appeal.

One advantage for Nissan is the upcoming launch of the next-generation Leaf. Sales won’t begin until later this year, which could be a double-edged sword: the new model may spark renewed interest once it arrives, but in the meantime it risks discouraging buyers from choosing the outgoing version still on sale.

New Locations

Elon Musk’s company has also been looking to grow its physical presence at locations across the country. According to Tesla Japan boss Richi Hashimoto, the company will open new dealerships in large shipping centers in a bid to further boost brand recognition. It currently has 25 locations in the country, and in 2026, this could double to roughly 50.

Currently, Tesla has a roughly 30 percent share of Japan’s EV market. Its network of Superchargers will also be expanded from the current 130 sites, ensuring that owners can easily and swiftly charge their EVs.

By the end of this year, it’s possible that Tesla may have sold as many as 10,000 EVs in Japan. Not bad for a company that’s struggling in many other markets, right?

The updated Tesla Model 3 Highland arrived in August 2023 with a range of welcome upgrades, along with one, or depending on who you ask two, changes that proved far more divisive.

More: Tesla’s Longest Range EV Is Here But Not For You

Aside from the removal of the gear selector stalk, one of the most debated changes was Tesla’s decision to eliminate the traditional turn signal stalk in favor of steering wheel buttons, mirroring the approach used in the Model S and Model X. After nearly two years of customer feedback, the company has chosen to bring the stalk back, at least in the Chinese market.

The official configurator in China now shows the turn signal stalk as standard equipment across all Model 3 trims. For existing owners who never warmed up to the steering wheel buttons, Tesla is also preparing a factory-backed solution that goes beyond aftermarket fixes.

Factory-Backed Retrofit

Beginning in mid-September, an accessory called the “Model 3 Steering Wheel Turn Signal Lever Modification” will be offered through Tesla’s online shop and app in China. Priced at ¥2,499 ($349), the upgrade must be installed at a Tesla Service Center, where technicians will fit the stalk using specialized tools.

Unsurprisingly, the stalk design looks nearly identical to the one on the Model Y Juniper, which is slimmer and more streamlined than the pre-facelift Model 3 version. The upgrade also involves fitting a new steering wheel without turn signal buttons, with Tesla offsetting costs by recycling the components returned by customers.

Tesla

Compatibility and Rollout

Initially, the accessory will only work on Model 3 Highland vehicles produced after February 7, 2025. Tesla has confirmed it will eventually expand compatibility to all Highland units. Considering the Model 3’s role as a global bestseller, it seems likely that similar offerings will eventually reach Europe and North America.

More: Tesla’s Screens Are About To Get Unreal Graphics

We don’t know whether the company plans to retrofit the Cybertruck, Model S and Model X with turn signal stalks in the future. For now, Tesla appears to be focusing on high-volume cars where customer sentiment has been strongest.

Aftermarket alternatives

During the two years without a factory option, third-party companies stepped in to fill the gap. Enhance Auto, for example, launched its own retrofit called S3XY Stalks, which gained traction among owners looking for a more traditional control setup.