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The Cheapest New Tesla Model Y In The U.S. Is Now Under $40,000

  • Tesla has added a cheaper, longer-range version of the Model Y to its U.S. lineup.
  • The Model Y Rear-Wheel Drive Long Range is eligible for the $7,500 federal tax credit.
  • It can drive over 350 miles on a full charge, according to Tesla.

Tesla has launched a new, more affordable version of the revamped Model Y crossover in the United States. Dubbed the Model Y Long Range Rear-Wheel Drive, it starts from $46,630 without the $7,500 federal tax credit and has an EPA-estimated driving range of 357 miles on a full charge.

That said, the new base trim is eligible for the federal EV incentive, which effectively lowers the starting price to $39,130 with shipping and Tesla’s order fee included. It’s worth noting that there are certain income caps for customers to benefit from the tax credit, both when purchasing and leasing.

The newly introduced version is, as its name suggests, powered by a single rear-mounted motor, as opposed to the All-Wheel Drive trim that comes with dual motors and more power, but also a slightly shorter range compared to the RWD version–327 miles.

The new single-motor Model Y is $4,000 cheaper than its AWD brother and can sprint from zero to 60 miles per hour in 4.6 seconds, 0.8 seconds slower than the dual-motor version. However, the top speed is the same for both models: 125 miles per hour.

Standard equipment includes a set of 19-inch wheels with all-season tires, a five-seat black interior, and a grey exterior paint job. There’s also a 16-speaker sound system, ambient lighting, and two displays–one in the front and one for rear passengers, just like on the AWD version.

The maximum charging speed is 250 kilowatts, the same as the dual-motor Model Y. However, because it has a longer driving range, the RWD model can gain more miles in 15 minutes than its more powerful brother–182 miles versus 169 miles.

Gallery: Tesla Model Y Rear-Wheel Drive Long Range (2025)

The options list includes five exterior colors, 20-inch wheels with all-season tires that lower the estimated range to 344 miles, a tow hitch rated at 3,500 pounds, a roof rack, all-weather mats, and Tesla’s so-called Full Self-Driving advanced driver assistance system.

Deliveries of the new Tesla Model Y Long Range Rear-Wheel Drive are expected to start in approximately one month, according to the automaker’s website.

All this being said, it’s worth noting that Tesla offers an even cheaper version of the facelifted Model Y in other markets. Dubbed simply the Model Y Rear-Wheel Drive, it has a shorter driving range than what’s currently available in the U.S., and the standard equipment list includes a nine-speaker audio system and textile door cards instead of the “Premium” ones fitted on the Long Range versions. If there’s enough demand for a shorter-range Model Y stateside, Tesla will likely bring that here sooner rather than later, seeing how its recent sales performance has been disappointing. It needs more sales, and a cheaper EV can help it achieve that.

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