Tesla unveils more affordable RWD Model Y in the US

Max McDee, 07 May 2025

Tesla has expanded its Model Y lineup in the United States with the introduction of a new Long Range Rear-Wheel Drive (RWD) variant. This new entry-level option for the updated Model Y, which underwent a design refresh earlier this year, is now available for order starting at $44,990.

Previously, American customers could only order the refreshed Model Y in a Long Range All-Wheel Drive (AWD) configuration. This initially launched as a fully-equipped Launch Edition priced at $60,000, followed by the regular AWD version with a starting price of $49,000.

Tesla unveils more affordable Model Y in the US

The rear-wheel drive model provides a more accessible price point for consumers interested in the still popular electric SUV. The new Model Y Long Range RWD has an estimated range of 357 miles on a single charge, surpassing the AWD version's range by about 30 miles.

However, the single-motor powertrain of the RWD model results in a slightly slower acceleration, achieving 0 to 60 mph in 5.4 seconds, compared to the AWD version's 4.6 seconds.

This launch follows the recent introduction of the same RWD version in European markets, where Tesla also offers an even more budget-friendly Standard Range RWD version. The company's decision to initially focus on the Long Range AWD for the US market was likely designed to optimize demand for that specific configuration. However, to fix the falling sales and keep the current production rate, a more affordable model has become necessary.

Tesla unveils more affordable Model Y in the US

In the coming weeks, Tesla plans to adjust its production lines in Fremont, California, and Austin, Texas, to accommodate a mix of both RWD and AWD Model Y vehicles. The company anticipates deliveries of the new Model Y RWD to start in the US within the next three to five weeks.

Tesla is offering a subsidized financing rate of 1.99% exclusively for the Model Y Long Range AWD at the moment. The automaker hopes for bigger demand generated by the more affordable RWD model, and US buyers can probably expect to see lower interest rates extended to all Model Y versions, mirroring the financing options already available in Europe and China.

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