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Tesla introduces new Model Y variant in US priced at $41,990

Tesla's new Model Y AWD starts at $41,990 with a 294-mile EPA range, filling pricing gaps and adding a fifth trim to boost U.S. sales amid growing competition.

  • On Monday, Tesla Inc. unveiled a more affordable Model Y All-Wheel Drive in the United States and Puerto Rico, listing it at $41,990 with a 294-mile EPA range.
  • Following quiet updates, Tesla dropped the 'Standard' trim name and added the AWD version to fill pricing gaps, now offering five Model Y variants.
  • Despite added hardware, the Model Y AWD accelerates 0–60 mph in 4.6 seconds and offers 74.8 cubic feet of cargo space, missing several listed vehicle features.
  • Tesla shares surged 1.11% to $426.50 in pre-market on Tuesday after closing at $421.81 on Monday, with the automaker promoting the launch and offering a 30-day Supervised Full Self-Driving trial.
  • In the context of strategic shifts toward AI and robotics, Tesla sold 7% fewer cars last year and fell 27% in Europe, analysts say the AWD addition aims to revive sales.
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The proposal promises better benefits and more security, but requires acceptance of an important concession that not all buyers will want to assume.

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drive.com.au broke the news in on Tuesday, February 3, 2026.
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