Tesla has just made its top-selling vehicle, the Model Y electric SUV, even more affordable – cutting the price by a substantial $4500. The revised price applies to the regular version of the heavily updated 2025 Tesla Model Y, which has, for the last couple of months, been offered only as a limited edition Launch Series that featured a host of equipment.
With the Launch Series selling out, Tesla has reduced the standard equipment for its most popular electric model and adjusted the price accordingly. Now starting at $58,900 plus on-road costs for the Rear-Wheel Drive (RWD) model, the new pricing structure means the Model Y is available for $4500 less than its Launch Series counterpart. However, it's worth mentioning that the starting price for the 2025 Model Y RWD is $3000 more than the outgoing 2024 version.
The Model Y Long Range, which features dual motors for all-wheel drive, is now priced at $68,900 before on-road costs, also reflecting a $4500 reduction from the Launch Series pricing. First deliveries of these new models are expected to begin in late May or early June 2025.
While the new RWD model retains several key features, it does come with some trade-offs. Under the standard model, buyers will lose certain premium features such as puddle lighting and a quality audio system. The regular variants will revert to a more basic gray trim instead of the luxurious vegan suede found in earlier models. Additionally, the standard 19-inch wheels will replace the 20-inch versions previously offered.
As for aesthetic updates, the 2025 Model Y showcases a redesigned exterior with cues inspired by the futuristic Cybertruck. This includes a sleeker front end and full-width light bars at the front and rear. Inside, occupants can expect several upgrades, including a new infotainment system featuring a 15.4-inch touchscreen, heated and ventilated front seats, and an additional 8-inch rear screen for backseat entertainment.
Performance-wise, the Model Y RWD boasts an impressive acceleration of 0 to 100 km/h in just 5.9 seconds, a full second quicker than the previous model. Furthermore, its WLTP range has increased to 466 km, up from 455 km, thanks to efficiency improvements and enhanced aerodynamics. The Long Range model also sees enhanced performance, achieving a sprint time of 4.8 seconds from 0 to 100 km/h; with the optional Acceleration Boost, this can be reduced to just 4.3 seconds.
Not to be overlooked, the Long Range model’s battery now offers a greater range of 551 km compared to its predecessor, representing an important improvement for drivers desiring less frequent recharging during longer trips.
According to Thom Drew, Tesla's country director in Australia, the demand for the updated Model Y is already strong, as evidenced by enthusiastic responses from customers at recent showcases. “We’re in a very happy spot. The response that we had at the event, I think we could easily say it outweighed our expectations,” Drew explained. He anticipates that this new pricing strategy will translate into increased sales, particularly for the Long Range variant, which accounted for 17 percent of total Model Y sales in Australia last year.
Despite these improvements, some features have been dialed down, such as the premium audio system for the RWD model, now replaced by a more basic nine-speaker arrangement without a subwoofer. The Long Range variant, however, retains an upgraded 15-speaker audio system.
In comparison to competitors in the market, the 2025 Tesla Model Y remains attractively positioned against similar mid-sized electric SUVs. The pricing of the RWD starts at $58,900, which rivals other electric options like the Kia EV5 and XPeng G6, ensuring Tesla maintains a competitive edge.
Finally, while a Performance variant is expected, Tesla has yet to release specifics regarding this trim. If it follows a similar timeline to the Model 3 Performance variant, updates on that front could be anticipated in the next few months.
In summary, Tesla's pricing adjustments for the 2025 Model Y reflect a strategic move to enhance its market competitiveness while continuing to attract a wide range of EV customers looking for performance and value. With various refinements and attentive price cuts, anticipation builds for the forthcoming standard variants of this popular SUV in mid-2025.
