A month after its launch in Israel, Tesla has changed the name of its base model. In recent days, the “Standard” designation was removed from the name of the new, more affordable Model 3 version, which is now simply called Rear Wheel Drive. The name of the better-equipped version remains “Premium – Rear Wheel Drive” to differentiate it from the base model.
Changing a model name shortly after launch is unusual in the automotive industry, which carefully researches and tests each new name before adopting it for years to come. This comes after Tesla last week announced it would stop production of the Model S and Model Y at the end of the year - models that have not been marketed in Israel for some time.
The standard models were launched globally last year and also include a cheaper base version of the Model Y, which has not yet arrived in Israel.
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By giving up electrically adjustable front seats, an 8-inch rear-seat screen, non-active shock absorbers, and a smaller battery, Tesla offers a lower price - about 15% cheaper - as its response to cheaper Chinese electric cars and the elimination of the $7,500 tax incentive for EVs in the U.S. The base Model 3 also has two fewer speakers (7 in total) but at least retains the panoramic roof, unlike the base Model Y. So far, this has not prevented Tesla from losing the title of the world’s largest EV manufacturer in 2025, which passed to BYD, while the company also recorded sales declines in January 2026.
At a price of NIS 191,600, the base model is NIS 34,000 cheaper than the better-equipped Premium Rear Wheel Drive, which also offers a longer driving range - 750 km compared to 534 km. The base model accelerates from 0 to 100 km/h in 6.2 seconds, compared to 5.2 seconds for the Premium version.
The first delivery of the more affordable model will arrive in Israel this month, which will reveal the effect of the price reduction on Model 3 sales, after it spent previous years overshadowed by the Model Y.