Tesla Model Y now has a cheaper AWD variant
What's the story
Tesla has expanded its US lineup with a new, more affordable all-wheel drive (AWD) variant of the Model Y crossover. The newly launched Tesla Model Y AWD starts at $43,630 (around ₹39.4 lakh) and offers an EPA-estimated range of 473km on a single charge. It is now the shortest-range model in the entire lineup.
Price comparison
The new variant is cheaper than the 'Premium' AWD model
The new Model Y AWD is $2,000 pricier than the base rear-wheel drive version with a range of 517km. However, it is $3,000 cheaper than the Model Y Premium RWD and $7,000 more affordable than the Premium AWD variant. Despite being about 91kg heavier than its rear-wheel drive counterpart, this new version can go from 0-97km/h in just 4.6 seconds, 2.2 seconds faster than the RWD model.
Market
'Standard' badge removed from entry-level trims
Interestingly, the new Model Y AWD doesn't carry the "Standard" badge as Tesla has removed that name from its entry-level trims of Model 3 and Model Y. However, higher-end models still retain their "Premium" and "Performance" titles. This change comes as Tesla continues to dominate the US EV market despite a gradual decline in its share. Last year, it sold 7% fewer cars in the US amid rising competition from other automakers.
Strategic shift
Tesla's focus shifts to AI and robotics
In Europe, Tesla has lost its top spot after a 27% drop in sales, allowing Volkswagen to take the lead. The company is now focusing on AI, robotics, and robotaxis instead of making innovative electric cars there.