Tesla launches a cheaper version of its Model Y in U.S.

Published 07/05/2025, 12:42
© Reuters

Investing.com -- Tesla has introduced a more affordable version of its Model Y in the United States.

The new Model Y Long Range RWD variant is priced at $44,990 before incentives, and $37,490 after applying the $7,500 federal tax credit. 

It becomes the new entry-level Model Y in the U.S., offering an estimated 357 miles of range, around 30 miles more than the all-wheel drive (AWD) version.

However, according to a report from Electrek, the new trim comes with a tradeoff in performance. 

They explained that with a single motor powertrain, it accelerates from 0 to 60 mph in 5.4 seconds, compared to 4.6 seconds for the AWD model.

Deliveries of the new RWD version are expected to begin within three to five weeks. Tesla (NASDAQ:TSLA) has already launched the new Model Y RWD in Europe and offers an even cheaper Standard Range RWD variant in markets like China.

The launch comes as Tesla recently reported a 13% drop in quarterly deliveries, its weakest in nearly three years, amid increased competition and waning consumer sentiment.

 

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