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Tesla launches cheaper Model Y AWD variant in the US
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Tesla has introduced a new all-wheel-drive version of its Model Y electric SUV, priced at $41,990, slotting between the base rear-wheel-drive model and premium trims. This addition expands options for buyers seeking better traction without premium features. The company also dropped the 'Standard' branding for entry-level models.
Following the December 2025 launch of Tesla's affordable Standard Rear-Wheel Drive variants for Model 3 and Y, the Model Y Standard—starting at $39,990 in the US and available in Europe—serves as a budget entry to Tesla's SUV lineup. A recent hands-on review reveals that despite numerous cost-saving tweaks, it feels nearly identical to pricier trims in daily use.