Tesla offers more affordable Model Y starting at $39,990

Published 07/10/2025, 19:46
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Investing.com -- Tesla launched a lower-priced version of its popular Model Y SUV on Tuesday, with a starting price of $39,990, reducing the entry point by $5,000 from its prior MSRP of $44,990. This move follows the expiration of $7,500 U.S. EV tax break at the end of last month, which effectively immediately raised prices for consumers.

The new Standard Rear-Wheel Drive Model Y offers an EPA-estimated range of 321 miles, according to Tesla’s website. The Standard Model Y features several differences from higher-priced versions. The interior comes with textile decor and dual-tone seating that combines textile and vegan leather. It has a closed glass roof rather than the signature panoramic roof found in more expensive trims.

Other cost-saving modifications include manual-adjust steering wheel instead of power-adjust, LED headlights, manual-folding side-view mirrors, and auto high beams.

Over the weekend, Tesla had built up anticipation for its "10/7" announcement by posting two separate teaser videos on X. One video showed headlights emerging from darkness while another displayed what appeared to be a spinning wheel, followed by "10/7" reveal date.

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