17 hours ago
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🚙 Tesla is now selling its cheapest Model Y yet
🛞 The new $44,990 model has rear-wheel drive and 357 miles of range
🚗 It’s the second-cheapest car that Tesla sells, next to the Model 3
💰 The cheaper model could help drive Tesla sales following a poor sales report
Tesla is finally starting to ship a new entry-level version of the Model Y, bringing the price down to $44,990 before a $7,500 tax credit. The company’s SUV is now available with rear-wheel drive and 357 miles of range, making the vehicle more accessible to both existing and new customers of Tesla. It’s the company’s second-cheapest car in its lineup, right next to the rear-wheel drive version of the Model 3.
The new version of the Model Y keeps all the same design changes that Tesla introduced earlier this year, including sleeker headlights and improved aerodynamics that allow for slightly longer range. At first, Tesla was only offering a maxed-out Launch Edition of the vehicle, priced at $60,000. Later, the company introduced a cheaper all-wheel drive version for $49,990, and now, you can get it with a single motor on the rear axel for even less.
The cheaper RWD version gets you 357 miles of range, which is an extra 30 miles compared to the AWD version. On the other hand, its performance takes a hit, going from 0-60 mph in 5.4 seconds opposed to 4.6 seconds. Tesla lets you configure the lower-end model in the same six colors as the more expensive versions, including Stealth Gray, Pearl White, Deep Blue Metallic, Diamond Black, Ultra Red, and Quick Silver.
The rear-wheel drive Model Y will start shipping to US customers in the next 3-5 weeks, according to Tesla. Deliveries are already going out in China.
The new model could help spark sales for Tesla. The company recently reported its worst sales in three years, following large-scale protests against CEO Elon Musk. Sales are down across markets, including 62% in the UK and 67% in Denmark, according to CNN. In the US, sales decreased by about 9% during the first three months of 2025, according to The New York Times. Cheaper EVs can be an easy way to boost sales, and given the appeal of the Model Y, the new RWD version could be enough to give Tesla’s sales a bit of a spark.
Max Buondonno is an editor at The Shortcut. He’s been reporting on the latest consumer technology since 2015, with his work featured on CNN Underscored, ZDNET, How-To Geek, XDA, TheStreet, and more. Follow him on X @LegendaryScoop and Instagram @LegendaryScoop.
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