Tesla has removed the $41,990 entry‑level all‑wheel‑drive Model Y from its US configurator, leaving the $39,990 rear‑wheel‑drive version as the cheapest option.
Tesla quietly eliminated the entry‑level all‑wheel‑drive Model Y, which was priced at $41,990, from its United States website. While a limited inventory remains available, new customers can no longer select this variant through the online configurator, narrowing the AWD choices at the low‑end of the range.
The most affordable Model Y now is the rear‑wheel‑drive (RWD) version at $39,990, offering a 348‑mile EPA range and a top speed of 125 mph. The Premium RWD trim costs $45,990 and extends the range to 355 miles. The Premium AWD starts at $49,990, drops range to 327 miles but accelerates 0‑60 mph in 4.3 seconds, while the Performance model begins at $57,990.
Compared with higher‑priced trims, the base RWD model lacks several comfort and tech features, such as heated rear seats, a second‑row touchscreen, FM radio, ventilated seats and a reduced speaker system. These amenities are standard on Premium and Performance versions, creating a clear differentiation in cabin experience.
The removal of the cheapest AWD variant is part of Tesla’s broader 2026 portfolio cull, which already saw the winding down of the Cybertruck and the discontinuation of the Model S and Model X. Today the mainstream lineup consists of the entry‑level Model 3 and the Model Y in four key configurations.
Concurrently, Tesla is reallocating resources toward scaling production of its Cybercab robotaxi and the Optimus humanoid robot. The company has made clear that most Cybercab units will serve its own robotaxi service rather than being sold as mass‑market vehicles, underscoring a strategic shift toward autonomous mobility solutions.
Key specifications
| Variant | Price (US$) | Range (mi) | 0‑60 (s) |
|---|---|---|---|
| Model Y RWD | $39,990 | 348 | N/A |
| Model Y Premium RWD | $45,990 | 355 | N/A |
| Model Y Premium AWD | $49,990 | 327 | 4.3 |
| Model Y Performance | $57,990 | N/A | N/A |
TechTimes Perspective
TechTimes believes Tesla’s decision to drop the lowest‑priced AWD Model Y reflects a deliberate move to streamline its product slate ahead of a deeper focus on robotaxi and Optimus development. With fewer budget‑friendly options, the average price of the Model Y in the U.S. is likely to rise, putting pressure on price‑sensitive buyers. For the Vietnamese market, a higher U.S. price baseline could translate into steeper import costs, making the Model Y less competitive against locally produced electric vehicles. Nonetheless, Tesla’s push toward autonomous ride‑hailing may eventually open partnership or service opportunities in Vietnam, though such outcomes remain speculative.