Tesla's New Model Y Is More Affordable, But It's Still Far From Cheap

Unlike traditional automakers, who are much more deliberate and forthcoming about making changes to their product lineups, Tesla is well known for making quick adjustments and additions to its vehicles. It could involve adding a new version of an existing model, discontinuing trim levels, or adjusting prices — including sometimes slashing prices to quickly move inventory. Its latest move is the addition of a new, more affordable trim level of its best-selling Model Y electric crossover. 

This latest Model Y variant is positioned at the more affordable end of the price range, slotting in above the Model Y RWD Standard. The main difference is the addition of a second motor, giving it AWD capability and a major jump in performance over the RWD model.

Tesla's new Standard AWD model becomes the fifth member of the current Model Y lineup and could be an enticing option for those who want the power and traction of a dual-motor Y without the expense of the crossover's Premium versions. It will be up to buyers to decide on the value proposition of the new $41,990 (plus $1,390 destination fee) Model Y Standard AWD when compared to the rest of the Model Y lineup and EV competitors from other brands.

Given how much the Tesla Model Y dominates the sales charts, it's a fairly big deal whenever a new version of it becomes available. Tesla launched the heavily refreshed "Juniper" Model Y in early 2025 and has been expanding the lineup in the months since. Prices now range from just under $40,000 to the high $50,000s, depending on range, features, and performance. 

Right now, the cheapest 2026 Tesla Model Y one can buy is the $39,990 (plus $1,390 destination) Model Y Standard RWD, which has a single electric motor driving the rear wheels. This has an EPA-estimated range of 321 miles. For a $2,000 premium, the Standard AWD adds a second, front-mounted electric motor. This gives it AWD traction and significantly better performance.

According to Tesla, the Model Y Standard AWD will hit 60 mph in 4.6 seconds, more than two seconds quicker than the 6.8-second time the company claims for the RWD version. The improved performance comes at the cost of range, though: The new AWD model uses the same battery as the base Model Y, giving it an EPA-estimated range of 294 miles — the lowest of all current Model Ys.

Previously, buyers who wanted a dual-motor Model Y had to step all the way up to the $48,990 (plus $1,390 destination) Premium AWD version, so the new trim represents a significant cost savings in that light. The Premium model does have features the Standard AWD doesn't, though. These include a larger battery with more range and additional amenities like a rear passenger display and ventilated front seats. Performance is identical, though, with no difference in 0-60 times between the two according to Tesla's estimates. 

Whether one considers this new $42,000 Model Y "cheap" is subjective, but at the very least, the $2,000 upcharge feels like a reasonable price to pay for the added benefit of AWD and a 0-60 time that's over two seconds quicker than the base model. And the range penalty is relatively minor, all things considered. Of course, if you want maximum acceleration from a new Model Y, you'll likely want to step up to the $57,490 Model Y Performance, which has a blistering 0-60 time of 3.3 seconds.

The Tesla Model Y faces more competition than ever, with many rivals gunning for its throne. However, the addition of this new version may entice EV buyers who want dual-motor traction and performance without breaking the bank.