Tesla has introduced a more affordable option for its updated 2025 Model Y electric vehicle in the United States. As reported, the new Long Range Rear-Wheel Drive Model Y starts at $37,490 when utilizing the $7,500 tax credit, whereas the price without this incentive is $44,990. Previously, the only available model was the Long Range All-Wheel Drive version, priced at a minimum of $48,990 without tax credits.
The revised Model Y maintains the familiar silhouette but features design updates, including rounder edges, smaller headlights, and taillights integrated into a redesigned lightbar. Inside, it boasts ambient lighting throughout the cabin, ventilated seats, and a prominent 15.4-inch touchscreen display. Rear passengers can enjoy an 8-inch Bluetooth-enabled display. The new rear-wheel drive variant is estimated to have a range of 357 miles on a single charge, surpassing the all-wheel drive version’s range of 327 miles. Both models are capped at a top speed of 125 mph, though the all-wheel drive model accelerates faster, reaching 60 mph in 4.6 seconds compared to the rear-wheel drive’s 5.4 seconds.
Deliveries of the Long Range Rear-Wheel Drive Model Y are anticipated to commence in the US within the next three to five weeks. Additionally, deliveries have already started in China and Europe. However, it’s worth noting that Tesla’s sales in Europe have experienced significant declines, especially in countries like the UK and Germany, attributed in part to the political controversies surrounding CEO Elon Musk and the growing competition from Chinese electric vehicle manufacturers like BYD.
This new model could reenergize Tesla’s presence in the U.S. market, especially as it seeks to counterbalance its European sales slump with a more budget-friendly option. As the electric vehicle landscape becomes increasingly competitive, offering a wider range of price points may help Tesla retain and attract customers.