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Tesla launches affordable all-wheel-drive Model Y amid lineup expansion and strategic shifts
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Tesla has added a new entry-level all-wheel-drive Model Y electric SUV to its US lineup at $41,990 with 294 miles of EPA-estimated range, expanding options to five trims. The update, amid declining sales, coincides with plans to discontinue Model S and Model X production in spring 2026 to prioritize Optimus robotics manufacturing.