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Tesla launches cheaper Model Y

May 7, 2025
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Tesla‘s Model Y in the U.S. has just gotten cheaper — if you don’t mind having one less motor, that is.

The company has launched a new variant of its recently redesigned Model Y electric SUV. Called the Model Y Long Range Rear-Wheel Drive, it starts at $44,990 before federal tax credit and local incentives.

For comparison, the Long Range All-Wheel Drive configuration starts at $48,990.

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This one should give Tesla a sales boost.
Credit: Tesla

For your money, you get just one motor driving the rear axle, with slightly slower acceleration — taking the car from 0-60 mph will take you 5.4 seconds, as opposed to 4.6 seconds on the All-Wheel Drive version. But you also get significantly more range: 357 vs. 327 miles, according to Tesla.


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Adding the $7,500 federal tax credit takes the car’s price to $37,490. Deliveries start in three to five weeks, however, while the All-Wheel Drive variant is available immediately.

The cheaper version of Tesla’s best-selling car should give sales a boost, and Tesla needs it, given it just had a pretty awful quarter. It’s worth noting that Tesla sales have plummeted in Europe and that’s despite the fact that the Rear-Wheel Drive Model Y has been available in many markets there for a few weeks now.

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