Tesla has added a fifth Model Y variant to its US lineup: a new Standard All-Wheel Drive model priced at $41,990. This new variant slots in between the Standard RWD ($39,990) and Premium RWD ($44,990), offering AWD capability at an accessible price point. 8 seconds to hit 60 mph, while the new AWD version cuts that nearly in half, adding the traction benefits of all-wheel drive for a $2,000 premium.
However, the trade-off is range: the RWD version offers 321 miles, while the AWD drops to 294 miles. For most buyers, 294 miles is more than sufficient for daily driving, and the improved performance and handling may be worth the 27-mile reduction. The new variant is part of Tesla's efforts to make its electric SUV more appealing to a wider range of customers.
With this addition, Tesla now offers five Model Y configurations in the United States: Standard RWD, Premium RWD, Premium AWD, Long Range RWD, and Long Range AWD. The $2,000 premium for AWD is genuinely reasonable, and more in line with what other automakers in that price range charge for an all-wheel drive dual motor upgrade. For buyers in regions with winter weather, or anyone who simply wants the improved traction and acceleration, the new Standard AWD offers compelling value.
At $41,990 before any local incentives, if they apply, it makes it one of the more affordable ways to get into an AWD electric SUV from any manufacturer. The timing also makes sense, as Tesla is facing increased competition in the top-end of its best-selling Model Y lineup with the launches of other electric SUVs. However, by going down-market with the Model Y, Tesla may be better off competing with these models rather than trying to maintain a premium image at the top end of the spectrum.