Your #1 source for auto industry news and content


Tesla launches new, cheaper base Model Y in the U.S.

In the near future, Q4 will likely be a significant quarter for Tesla, with the introduction of the cheaper model, the recently updated Model 3 sedan, and the upcoming Cybertruck.

In order to combat the global slowdown in electric vehicle sales, Austin-based EV manufacturer Tesla unveiled a new, less expensive version of its well-liked Model Y SUV in the U.S.

The Model Y RWD (rear-wheel drive) model, an SUV variant with a single motor powering its rear axle, is currently available on Tesla’s U.S. website. Tesla predicts that the Model Y RWD will cost $43,990 and have a range of 260 miles. Tesla previously offered a base Model Y AWD (all-wheel drive) for $47,490, which is $3,500 more expensive than this new RWD model.

Compared to NMC (nickel manganese cobalt) batteries, which has a longer battery life but a lower range, the new variant is likely powered by less expensive LFP (lithium iron phosphate) batteries. Tesla says the new RWD qualifies for the full $7,500 federal EV tax credit, which means this model may be purchased for as little as $36,490 if consumers meet specific income requirements. A buyer’s AGI (adjusted gross income) shouldn’t exceed $150,000 for an individual or $300,000 for a married couple filing jointly.

Tesla didn’t specify where the Model Y RWD is built, but it may be produced at Giga Austin, which currently makes the SUV and, if production starts, the Cybertruck. Nevertheless, the company has a Model Y RWD assembled in China and at the company’s more recent gigafactory in Berlin.

The debut of a new model comes after Tesla’s global sales for the third quarter fell short of analyst projections. Tesla claimed to have delivered 435,059 automobiles globally, of which over 419,000 were Model Y and Model 3 vehicles, and about 16,000 were more expensive Model X and Model S vehicles. The Wall Street consensus estimated 456,722 deliveries.

In the near future, Q4 will likely be a significant quarter for Tesla, with the introduction of the cheaper model in the US, the recently updated Model 3 sedan in some markets, and Cybertruck deliveries anticipated by the end of the year.

Stay up to date on exclusive content from CBT News by following us on Facebook, Twitter, Instagram and LinkedIn.

Don’t miss out! Subscribe to our free newsletter to receive all the latest news, insight and trends impacting the automotive industry.

CBT News is part of the JBF Business Media family.

Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for CBT News. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

Related Articles

Latest Articles

From our Publishing Partners