Tesla has officially launched its new Rear-Wheel Drive (RWD) Model Y in the United States, marking a significant addition to its electric vehicle lineup. This latest variant, which is the most affordable version of the Model Y to date, comes with a starting price of $44,990, or as low as $37,490 if buyers qualify for the $7,500 federal tax credit.
The RWD Model Y offers an impressive range of 357 miles (575 km) when equipped with standard 19-inch wheels, which is 30 miles more than its all-wheel drive (AWD) counterpart. However, opting for the larger 20-inch wheels reduces the range to 344 miles (553 km). The vehicle also maintains a top speed of 125 mph (201 km/h), although its 0-60 mph acceleration time is slower at 5.4 seconds, compared to the 4.6 seconds of the AWD version.
Tesla initially introduced the Model Y in a fully-spec’d Long Range AWD variant earlier this year, which was part of the Launch Series. After halting production of the Launch Series, the company shifted its focus to the standard Long Range AWD Model Y. As of May 6, 2025, the RWD variant is available for order in the U.S., with first deliveries expected to begin in approximately 3 to 5 weeks.
According to Tesla, the RWD version aims to attract a broader customer base by providing a more budget-friendly option without compromising essential features. The new model competes well against other electric vehicles in the market, offering a unique combination of affordability and range. This strategic move comes as Tesla faces increasing competition in the electric vehicle sector.
In addition to its competitive pricing and impressive range, the Model Y RWD includes several enhancements to its cabin. These improvements feature acoustic glass to reduce outside noise, as well as luxurious interior options such as heated and cooled seats. The updated design also includes a refined door closing sound, contributing to a more premium feel.
The RWD Model Y is not only available in the U.S. but has also been rolled out in Europe and China, reflecting Tesla's ongoing expansion in the global electric vehicle market. This launch follows an earlier introduction in Europe, where the model has been well-received despite some challenges in sales.
Despite the positive reception of the new model, Tesla has recently faced challenges in maintaining sales momentum. Reports indicate that Tesla's sales have declined in several markets, including the U.K. and China, where competition from local manufacturers has intensified. In the U.K., sales fell by 62% in April, and in China, deliveries decreased by 26% as consumers gravitate towards cheaper, tech-laden local models.
In response to these market dynamics, the introduction of the RWD Model Y represents Tesla's effort to broaden its market reach and meet the rising demand for reasonably priced electric vehicles. The company is also preparing for the anticipated 2026 launch of the Cybercab, a two-door Robotaxi, further diversifying its vehicle offerings.
Tesla's latest move to launch a cheaper Model Y with enhanced range reflects its commitment to making electric vehicles more accessible to a wider audience. As the electric vehicle market continues to evolve, Tesla's ability to adapt and innovate will be crucial in maintaining its position as a leading provider of electric vehicles.
With the new RWD Model Y, Tesla is not only addressing the needs of cost-conscious consumers but also reinforcing its commitment to sustainability and innovation in the automotive industry. As deliveries commence in the coming weeks, many potential buyers are eagerly awaiting the opportunity to experience this new model, which promises to deliver both performance and value.
In conclusion, the launch of the Long Range Rear-Wheel Drive Model Y is a significant step for Tesla as it seeks to solidify its standing in the electric vehicle market. By offering a more affordable option with impressive range, the company aims to attract a broader customer base while continuing to deliver the high standards of performance and design that have made the Model Y a best-seller.
