AUTO

Tesla Launches Model Y RWD in the US, Its Cheapest SUV

October 9, 2023

The RWD Tesla Model Y will have a range of about 260 miles.
After applying tax credits, the rear-wheel-drive Model Y will cost under $37,000.
The re-introduction of the Model Y Short-Range came after Tesla shared it did not meet Q3 delivery expectations.

Tesla continues to drop prices, and the top American automaker is now offering a low-priced entry-level RWD Model Y. This reintroduced model is available to order with delivery in late October.

Entry-Level Price with Exceptional Tesla Engineering

The automaker saw fewer vehicles delivered in the third quarter, so stakeholders decided to reintroduce the rear-wheel-drive Model Y to entice buyers who want a low-cost EV. This model will qualify for the $7,500 tax incentives, which brings the $43,990 purchase price to $36,490 for buyers with an adjusted gross income under $150,000.

This model is set to compete against other low-cost EVs, especially those not being manufactured thanks to the UAW strikes.

Other cheap EVs include the Nissan Leaf with 110 miles of range, the Chevy Bolt with 250 miles of range, and the MINI Cooper SE with 110 miles of range. These models have sticker prices under $30,000, but they don’t currently have access to the Tesla Supercharger network or the legendary Tesla specs.

Model Y RWD Details

The Tesla Model Y Standard Range delivers approximately 260 miles of range, which is significantly less than the 330 miles of range from the Model Y Long Range with all-wheel drive. The long-range model has a sticker price that is $7,500 higher than the entry-level RWD model.

Tesla will equip the entry-level Model Y with lithium-iron-phosphate batteries. These less expensive batteries have a longer life and shorter range than the nickel-manganese cobalt batteries in the long-range models.

According to the Tesla website, the RWD Model Y has a top speed of 135 MPH and a zero-to-60 time of 6.6 seconds.

Tesla has not shared details regarding the new Model Y RWD assembly plant. The Giga Austin plant makes the AWD Model Y along with plants in China and Berlin.

Tesla Financial Expectations

The automaker announced it did not meet sales predictions for the third quarter, delivering 435,059 EVs globally. Analysts predicted Tesla would sell over 456,000 EVs. During the third quarter, Tesla only sold 16,000 higher-priced Model X and Model S vehicles.

Fourth-quarter expectations are high for Tesla, especially now that the automaker has announced this new low-cost vehicle.