Tesla adds cheaper all-wheel-drive option to Model Y lineup

04 February 2026

Tesla made a quiet but significant change to its most popular vehicle. The company launched a new version of the Model Y that brings all-wheel drive (AWD) to a much lower price point. The automaker previously called its entry-level vehicles "Standard," but it has now dropped that name altogether. The new variant is simply the Model Y All-Wheel Drive, and it sits just above the basic rear-wheel-drive model.

Until now, buyers who wanted the extra grip of two motors had to spend a lot more money, and the new addition changes that math. The Model Y All-Wheel Drive starts at £30,560 in the US (other markets should get this model soon). This makes it only £1,500 more expensive than the base Model Y Rear-Wheel Drive, which sells for £29,110. It is also a massive saving of £5,100 compared to the more expensive Model Y Premium AWD.

The biggest reason to choose the new trim is performance. Adding a second motor to the front of the car makes it much faster - the new version can accelerate from zero to 62 mph in just 4.6 seconds when the base rear-wheel-drive model takes 6.8 seconds to reach the same speed. This means the new version is 2.2 seconds faster for a relatively small price increase.

Having power going to all four wheels is also a big deal for people living in snowy or rainy areas. While electric cars generally handle well due to their heavy batteries, the all-wheel drive offers much better traction on slippery roads. For many drivers in cold-weather states, this feature is more of a necessity than a luxury.

Unfortunately, there is no such thing as a free lunch, even in the world of EVs. Adding a second motor adds weight and uses more energy. Because of this, the new AWD version has a driving range rated at 294 miles. That is a drop of about 27 miles compared to the 517-km range of the base Rear-Wheel Drive model.

If you compare it to the more expensive trims, the gap grows even wider. The Model Y Premium RWD offers the most distance at 357 miles, and the Premium AWD manages 327 miles. For drivers who mostly charge at home and commute short distances, the 473-km range is likely enough, but it is something to consider for long road trips.

Of course, Tesla kept the price down by keeping the features simple. This version does not come with the upgrades found in the "Premium" or "Performance" models. Inside, you will find cloth seats instead of the synthetic leather used in higher trims. The sound system is also more basic, featuring only seven speakers instead of the high-end 15-speaker setup.

Other missing details include the front LED light bar and the smaller 18-inch wheels. Interestingly, while the car still has a large glass roof, Tesla has covered it with a headliner material. This makes the cabin feel more traditional but serves as a reminder that this is the budget-friendly version of the SUV.

The timing of this release is no accident. Electric cars in the US are still popular, but the market has become much tougher. Federal tax credits are gone, and competitors are launching many new EVs that cost less. By offering a cheaper way to get all-wheel drive, Tesla is trying to keep the Model Y attractive to people who are watching their budgets.

This new trim fills a gap in the lineup that rivals like Ford and Chevrolet were starting to exploit. It offers a "sweet spot" for those who want the speed and safety of an AWD system without the lofty price tag of the high-end models. As Tesla's sales keep falling, the company hopes that these small changes will help older models stay relevant. Will it work? We only have to sit back and wait for the answer.

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