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Home ยป Tesla Removes Entry-Level Model Y AWD from US Site, Boosting Base Price

Tesla Removes Entry-Level Model Y AWD from US Site, Boosting Base Price

Canaccord Genuity just cut his price target on $TSLA from $267 to $234

Tesla has quietly removed the most affordable all-wheel drive (AWD) Model Y variant from their US website, pushing the starting price over $50,000. The maneuver points to Tesla streamlining Model Y offerings while prioritizing its 4680 battery cells for Cybertruck production.

Previously, Tesla offered three Model Y configurations in the US market:

  • Model Y AWD (Standard Range)
  • Model Y Long Range
  • Model Y Performance

With the standard range Model Y AWD deleted from the lineup, the Model Y Long Range now becomes the base model at $50,490 before any incentives.

tesla model y

The removed Model Y AWD was notable for utilizing Tesla’s 4680 lithium-ion battery cells, unlike the long range and performance variants running on legacy 2170 cells.

Tesla likely is streamlining Model Y production around fewer battery types while reserving 4680 cells for the imminent Cybertruck launch. This allows them to focus on scaling new cell production efficiently.

The tradeoff is losing a sub-$50,000 starting point Model Y. But with order backlogs stretching over 6 months, Tesla appears comfortable elevating Model Y price floors for now.

As 4680 cell output grows, a revived standard range Model Y could retake the entry-level position at a later date. For today, buyers need to budget more for dual motor Model Y configurations as Tesla embraces some production simplification.

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