In a shakeup of its Model Y lineup, Tesla Inc. has launched an all-new Long Range rear-wheel drive configuration priced at $44,990 before incentives. Offers 320 miles of EPA-estimated range, a substantial 60-mile boost over the company’s previous base Model Y RWD that started at $42,990.
That retired 260-mile RWD model has been officially discontinued as part of the product realignment, leaving the new Long Range RWD as the lowest-priced Y option for U.S. buyers. After factoring the $7,500 federal tax credit, the effective price drops to $37,490.
Elon: Existing RWDs Can Unlock Extended Range
In an interesting twist, Tesla CEO Elon Musk indicated recent Model Y RWD customers may be able to pay to unlock additional range via a software update. From Elon X post reply, models produced over the “past several months” can gain 40 to 60 miles by paying $1,500 to $2,000 to access their full battery capacity pending regulatory approval.
While a modest $2,000 premium over the outgoing base model, the new Long Range RWD represents a better value proposition when accounting for its significantly longer EPA range rating. It also aligns more closely with the 310-mile AWD Long Range variant that costs $10,000 extra.
The revamped Model Y lineup continues Tesla’s strategy of simplifying its vehicle offerings while pushing buyers towards higher-priced trims with increased range and performance capabilities. Tesla’s appears better positioned to cater to consumer demand for its longest-range EVs at each respective price point.