Tesla has made an update to its US website, introducing a more affordable Model Y RWD variant with a starting price of $43,990. This move potentially positions it as the most budget-friendly Model Y option available in the United States when considering incentives.
This newly introduced model effectively replaces the Model Y AWD, which had a base price of $47,740 but was unexpectedly discontinued the previous month. The key difference with the Model Y RWD is its rear-wheel drive configuration, as opposed to the all-wheel drive setup of its predecessor. This change not only reduces costs by eliminating one motor but also appears to involve the use of a more economical battery.
Consequently, the Model Y RWD starts at $43,990, marking a $3,750 reduction in comparison to the discontinued version. Furthermore, this model remains eligible for the $7,500 US Federal EV Tax Credit, resulting in a post-credit base price of $36,490.
It's worth noting that the new model seems to feature Tesla's more affordable Lithium-Iron-Phosphate (LFP) battery technology. LFP batteries are known for their cost-effectiveness and durability when compared to the more common Nickel-Magnesium-Cobalt (NMC) cells. However, they tend to have lower energy density, translating to less range for a given battery weight or volume. On the positive side, LFP batteries do not use cobalt, which is a conflict mineral.
Notably, the Model Y standard range with an LFP battery has been available in China since 2021, and Tesla recently updated it to achieve a 0-62mph acceleration time of 5.9 seconds, down from the previous 6.9 seconds. This adjustment is roughly equivalent to a 0-60 time of 6.6 seconds.
Interestingly, the "new" US model bears similarities to the "old" Chinese model, at least for the time being.
This newly introduced model effectively replaces the Model Y AWD, which had a base price of $47,740 but was unexpectedly discontinued the previous month. The key difference with the Model Y RWD is its rear-wheel drive configuration, as opposed to the all-wheel drive setup of its predecessor. This change not only reduces costs by eliminating one motor but also appears to involve the use of a more economical battery.
Consequently, the Model Y RWD starts at $43,990, marking a $3,750 reduction in comparison to the discontinued version. Furthermore, this model remains eligible for the $7,500 US Federal EV Tax Credit, resulting in a post-credit base price of $36,490.
It's worth noting that the new model seems to feature Tesla's more affordable Lithium-Iron-Phosphate (LFP) battery technology. LFP batteries are known for their cost-effectiveness and durability when compared to the more common Nickel-Magnesium-Cobalt (NMC) cells. However, they tend to have lower energy density, translating to less range for a given battery weight or volume. On the positive side, LFP batteries do not use cobalt, which is a conflict mineral.
Notably, the Model Y standard range with an LFP battery has been available in China since 2021, and Tesla recently updated it to achieve a 0-62mph acceleration time of 5.9 seconds, down from the previous 6.9 seconds. This adjustment is roughly equivalent to a 0-60 time of 6.6 seconds.
Interestingly, the "new" US model bears similarities to the "old" Chinese model, at least for the time being.