Electric SUV
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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.
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.