- Tesla launches a cheaper all-wheel-drive Model Y
- The automobile offers up some luxuries but prices $41,990
- Cheaper fashions might assist Tesla fend off the competitors
Tesla’s gross sales have been taking a beating throughout the globe of late, with figures dipping to a close to four-year low in November 2025 in the US, based on statistics from Cox Automotive, by way of Reuters.
The image is much more bleak in Europe, with numbers down by as a lot as 88% in some areas.
Whereas EV gross sales in the US have usually taken a nasty downturn, worsened by the Trump administration’s cancellation of the $7,500 federal tax credit score, Elon Musk’s once-innovative model has been significantly affected.
The corporate’s complete gross sales fell almost 23% in 2025 in comparison with the earlier yr, regardless of its launch of cheaper Commonplace variations of the Model 3 and Model Y.
The corporate is now hitting again with a extra reasonably priced Model Y AWD model that it hopes will enhance demand, due to a bump in performance at little or no value.
The $41,990 (earlier than incentives) AWD Model Y sits simply above the base-spec rear-wheel-drive Model Y, providing a 294-mile EPA vary and a 0-60mph dash time of 4.6 seconds, which is greater than two seconds quicker than the entry-level rear-wheel-drive variant.
Though Tesla has ditched the ‘Commonplace’ naming conference in its advertising and marketing supplies, this new fifth addition to the line-up very a lot follows the similar sample as the least expensive vehicles in the vary, eschewing the premium audio system, second-row touchscreen, and open glass roof for far more fundamental choices.
So like its rear-wheel drive counterpart, this new automobile lacks the HEPA filter, touchscreen adjustable air vents, vegan leather-based inside, energy folding seats, adaptive excessive beams, and frequency-dependent shock absorbers of the dearer Premium counterparts.
The all-electric vary is additionally barely down in the rear-wheel-drive model, due to the second motor and extra performance on faucet, with 321-miles enjoying 294-miles.
Tesla wants extra reasonably priced vehicles
The added advantages of getting all-wheel-drive traction, in addition to the extra tempo for a further $2,000, might be interesting to North American consumers – a gaggle that is drastically missing alternative in electrical automobiles resulting from a choice from many world automakers to not export to the tariff-riddled market.
As we now have stated earlier than, the newest iterations of each the Model 3 and Model Y are the finest vehicles Tesla has ever made, and even in the extra fundamental ‘Commonplace’ trims, nonetheless symbolize a superb, fuss-free introduction into the world of EVs. Particularly when you think about that Tesla’s Supercharger community stays certainly one of the easiest and most seamless methods to cost.
Tesla’s alternative to supply cheaper variations of its best-sellers is intelligent and well timed, as, regardless of demand for EVs in the US waning, there is a rising variety of premium electrified rivals from BMW, Volvo, and Mercedes-Benz set to reach in the coming months.
If Tesla desires to stay aggressive, it must undercut the competitors.
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