Tesla Launches Affordable Model Y RWD with Longest Range in Its Class
Tesla’s Model Y Long Range RWD debuts in the US with a lower price, 357-mile range, and a bold new sales strategy to regain momentum.
Tesla Introduces More Affordable RWD Model Y in the US
Tesla has officially launched the Model Y Long Range Rear-Wheel Drive (RWD) variant in the US, now one of the most affordable long-range EVs on the market. Priced at $44,990, this version drops to an effective $37,490 after a $7,500 federal tax credit, offering a compelling value proposition amid growing electric vehicle competition.
Impressive Specs at a Lower Price
This model boasts an EPA-rated range of 357 miles (574 km), surpassing the AWD version by 30 miles. It accelerates from 0–60 mph in 5.4 seconds, slightly slower than its AWD counterpart but still suitable for daily performance needs. Its single-motor RWD setup prioritizes energy efficiency without sacrificing functionality.
A Strategic Move Amid Sales Decline
The launch comes as Tesla responds to a 13% drop in global sales last quarter—its worst performance in nearly three years. In the UK, Tesla sales plunged 62% in April 2025, while deliveries in China fell 26% month-over-month. With this price-friendly model and generous tax incentives, Tesla hopes to re-engage buyers in saturated EV markets.
Model Y Variant Comparison
Model Y Variant | Price (USD) | Range (miles) | 0–60 mph |
|---|---|---|---|
RWD Long Range | $44,990 | 357 | 5.4 sec |
AWD Long Range | $48,990 | 330 | 4.6 sec |
AWD Performance | $52,490 | 303 | 3.5 sec |
With its lower price, extended range, and federal tax benefits, the Tesla Model Y RWD positions itself as a dark horse in the EV segment. While its long-term impact on sales remains to be seen, it signals Tesla’s shift in strategy to stay ahead in the evolving electric vehicle race.
