Tesla has introduced a new All-Wheel Drive (AWD) variant of the Model Y in the US and Puerto Rico. The range starts from $41,990, with an EPA-certified range of 294 miles on a single charge. The purchase includes a 30-day free trial of Supervised Full Self-Driving (FSD).
Model Y Lineup
The Model Y lineup now consists of 5 trim levels, with prices ranging from:
- $39,990 for the Rear-Wheel Drive variant
- $57,490 for the Performance All-Wheel Drive variant
Reaction from Tesla’s VP of Finance
Sendil Palani, Tesla’s VP of Finance, expressed his excitement about the new Model Y AWD, stating that it is the lowest-priced AWD vehicle the company has ever sold in North America. He highlighted the importance of AWD for customers living in cold-weather conditions, citing his own experience growing up in Chicago.
7-Seater Model Y
Tesla had previously announced the 7-seater version of the Model Y, priced at $51,490. The trim is only available in the Model Y Premium all-wheel drive guise and includes a new, larger 16-inch touchscreen display for an additional $2,500.
Model Y Availability
The Model Y is also available in a 6-seater layout guise in the Chinese market, known as the Model Y L. This variant has been a popular offering in China and is expected to be introduced to the European market this year after receiving EU approval.
Best-Selling EV
The Model Y was the best-selling electric vehicle (EV) in the US last year, with over 357,528 units sold in 2025. However, Tesla’s sales have declined, with a 20.2% year-over-year decrease in December sales in Europe.
Price and Performance
The new Model Y AWD offers a competitive price point, with a range that exceeds expectations. Tesla’s stock has shown a favorable price trend in the long term, according to Benzinga Edge Rankings.
Key Points:
- Price: $41,990
- EPA-Certified Range: 294 miles
- 30-day free trial of Supervised Full Self-Driving (FSD)
- 5 trim levels available
- 7-seater version priced at $51,490
- 6-seater layout guise available in China and expected in Europe
- Best-selling EV in the US in 2025
- Decline in sales, with a 20.2% year-over-year decrease in December sales in Europe
Current Price Action:
Tesla’s stock surged 1.11% to $426.50 during pre-market trading on Tuesday, after dropping to $421.81 at market close on Monday.