Tesla has recently made changes to its Model Y lineup by discontinuing the Rear-Wheel Drive variant and replacing it with the Long Range RWD variant. The Model Y RWD was previously priced at $42,990 and was reduced by $2,000 just two weeks ago, making it the lowest list price ever. The Long Range RWD will now start at $44,990.
The Long Range RWD offers a range of 320 miles compared to the RWD’s 260 miles, providing a significant range boost for an additional $2,000 cost. The Model Y LR All-Wheel Drive, starting at $47,990, has a range of 310 miles but provides faster acceleration. Elon Musk mentioned on social media that many recent RWD Model Ys have an additional 40-60 miles of range that can be unlocked for $1,500-$2,000.
The Long Range RWD is eligible for $7,500 IRA tax credits, bringing the effective price down to $37,490. This is considerably cheaper than the Model 3’s base price of $38,990 and AWD price of $47,740. However, these vehicles do not qualify for tax credits due to non-compliant batteries. The Model 3 Performance starts at $53,990 but is eligible for tax credits, making the effective price $46,490.
Tesla recently removed discounts on new U.S. Model Y inventory which had been around 1
