Tesla has begun accepting orders for its more affordable rear-wheel drive Model Y in the United States, priced at $45,990. With federal tax credits potentially bringing the price down to $37,490, it becomes the second least expensive electric vehicle (EV) in Tesla’s offerings, following the rear-wheel drive Model 3.
According to Tesla, this new variant, which is expected to start deliveries within a few weeks, boasts an impressive range of 357 miles—30 miles more than the all-wheel drive Model Y. It features a single motor on the rear axle and can accelerate from zero to 60 mph in 5.4 seconds, which is a bit slower than the all-wheel drive version’s rapid 4.6 seconds.
The introduction of this cheaper EV comes as Tesla faces declining sales, the worst in three years, amidst protests targeting CEO Elon Musk. While the hope is that the launch of the more affordable Model Y will help boost sales in the U.S., efforts to increase demand have not proven successful in Europe, where sales have continued to fall despite the rollout of cheaper models earlier in the year. For instance, sales in the UK saw a staggering plummet of 62 percent in April, showcasing the challenges Tesla is facing in the global market.
In light of these circumstances, the introduction of the rear-wheel drive Model Y could be a strategic move to revitalize interest and sales, especially in a market that is increasingly crowded with EV options. As consumers become more price-sensitive, Tesla’s efforts to offer a variety of models at differing price points may help capture a wider audience looking for affordable electric vehicles.