Tesla introduced a new base variant for its Model Y crossover electric SUV in the US earlier this week and dropped prices across both Model 3 and Model Y variants.
Tesla kept the same prices for Model S and Model X announced at the start of September. Tesla Model 3 and Model Y prices are now at a historical low since their launch. Add federal and state-level tax credits, and the prices of these lower-end Teslas might surprise you in some states.
The Return of Tesla Model Y RWD in the US
A more affordable Rear-Wheel Drive Tesla Model Y is a long time coming for the company’s US customers. Tesla launched a base Model Y RWD variant in 2021 for a brief period and discontinued it.
It has been around 2.5 years since the potential US customers have been waiting for the most affordable base Model Y variant. The Model Y RWD version returned only after Tesla discontinued the previous Giga Texas-made base Model Y AWD variant last month. The launch also came as Giga Texas production resumed after a month-long break.
The basic specs of the new Tesla Model Y RWD for the US are as follows:
- Range: 260 miles
- Acceleration (0-60 mph): 6.6 seconds
- Top speed: 135 mph
Tesla introduced a base RWD Model Y variant in Canada earlier in April. But this specific Model Y RWD is getting imported from China — made at Giga Shanghai. The one for the US is most probably manufactured at Giga Texas as it was launched after the factory restarted production and the 4680-cell-based AWD variant is still out of sight.
New Tesla Model Y Prices
Tesla has set the price of the new US Tesla Model Y RWD to $43,990. Interestingly, it qualifies for the Federal Tax Credit of $7,500 after which a base Tesla Model Y RWD can cost an all-time low of $36,490.
In states like California which offer multiple clean vehicle rebates and rewards, a Tesla Model Y RWD can cost even less than $30K.
I remember when in 2016, Tesla CEO Elon Musk promised a $35K Tesla Model 3, he received a lot of criticism for not delivering on promise. But after a few years, even a costlier Model Y can be had for under $35K.
Tesla also slashed $2,000 on the price of Model Y Long Range AWD and Model Y Performance each. Here are the new prices for all Tesla Model Y variants:
- Tesla Model Y RWD = $43,990 (previous: $46,990)
- Tesla Model Y Long Range AWD = $48,490 (previous: $50,490)
- Tesla Model Y Performance = $52,490 (previous: $54,490)
New Tesla Model 3 Prices
Tesla also reduced the prices of its North American Tesla Model 3 (a legacy version as the rest of the world gets the new Model 3 Highland).
Both the base Model 3 RWD and Model Y Long Range AWD received a price reduction of $1,250 each. The higher-end Performance version of the Model 3 got a discount of $2,250. Here are the new Tesla Model 3 prices after the most recent price drops:
- Tesla Model 3 RWD = $38,990 (previous: $40,240)
- Tesla Model 3 Long Range AWD = 45,990 (previous: $47,240)
- Tesla Model 3 Performance = $50,990 (previous: $53,240)