Model Y

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Photorealistic image of new Tesla Model Y AWD SUV priced at $41,990 in a US showroom, ideal for news article.
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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 recent resumption of 4680 cell production for Model Y vehicles, Tesla has confirmed achieving a key manufacturing milestone: full dry-electrode processing for both anode and cathode components. VP Bonne Eggleston highlighted the breakthrough on X, enhancing supply chain resilience amid trade tensions, as noted in the Q4 and FY 2025 update.

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Tesla has restarted production of Model Y vehicles equipped with its in-house 4680 battery cells in the US, more than two years after halting to prioritize the Cybertruck. Weak Cybertruck sales and tariff-related supply chain issues prompted the shift, with new non-structural packs improving repairability. The move was announced in Tesla's Q4 2025 shareholder update.

Elon Musk has declared the Tesla Model Y the world's best-selling car for the third consecutive year, but analysts question the claim based on available data. Projections for 2025 suggest the Model Y has fallen to third place behind Toyota's RAV4 and Corolla. Tesla's reluctance to disclose specific sales figures fuels the uncertainty.

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A Tesla Model Y owner named Christopher Quail experienced a shift in perspective during a routine service visit when he received a Model S as a loaner vehicle. The superior air suspension and acceleration in the flagship sedan quickly made him question returning to his daily driver. His Facebook post sparked discussions among other owners about the allure and drawbacks of Tesla's higher-end models.

A US Army veteran from North Carolina, who owns both a Tesla Cybertruck and Model Y, has shared his real-world charging expenses, revealing significant savings that convinced him to switch to electric vehicles. Despite initial skepticism, he now advocates for EVs based on the affordability of daily use. His calculations show costs far below those of gas-powered alternatives.

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Two key Tesla executives, Siddhant Awasthi and Emmanuel Lamacchia, announced their departures from the company on November 10, 2025, after eight years each. Awasthi led the Cybertruck and Model 3 programs, while Lamacchia oversaw the Model Y, Tesla's best-selling vehicle. The exits add to a series of high-profile departures amid slowing sales and a strategic shift toward AI and robotics.

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