Tesla Ditches Budget AWD Model Y in US

Tesla has discontinued the $41,990 Model Y All-Wheel Drive (AWD) variant from its US online ordering system. This change elevates the starting price for a dual-motor Model Y to $49,990, marking an $8,000 increase for consumers seeking two motors. The removed trim had been available for just over nine months, introduced in early February without public explanation. Its departure leaves the Premium AWD version as the most affordable dual-motor option.

This price hike contrasts sharply with competitors, as Chevrolet's Equinox EV LT 1 AWD starts at $40,295, and Ford's Mustang Mach-E Select AWD is priced at $40,795. Both are over $9,000 less than Tesla's current cheapest AWD offering. The move aligns with a broader trend of Tesla streamlining its lineup. In January, the company ceased production of the Model S and Model X, and is currently winding down Cybertruck manufacturing.