A lower-cost Tesla Model Y is once again available if you’re looking for a value option (with incentives).
If you’re looking to order a less expensive Model Y, there’s good news: You can save $5,500 by going for the base, rear-wheel drive version. While it was an option earlier on in the crossover’s production run, Tesla dropped the “Standard Range” Model Y in favor of the all-wheel-drive, dual-motor Long Range and Performance versions.
This move comes amid a notable shift in strategy from Tesla. The automaker’s made efforts to position their cars more competitively in the wake of stiffer competition and inflation. It can be tough to keep up with all the changes, but for the time being you can once again get a rear-wheel-drive Model Y for $45,630 including destination charges, but before options and taxes.
Tesla’s entry-level Model Y offers up about 260 miles of estimated range per charge. That’s about 70 fewer miles than the Long Range, though the base model does retain the same 135 mph top speed. The 0-60 time also increases to 6.6 seconds from 4.8, though the former figure is still a respectable figure for what is, after all, more of a popular electric commuter than an out-and-out performance car (not everyone needs a Performance or a Plaid, right?).
The picture gets more interesting with incentives
When you head over to Tesla’s website to build your own RWD Model Y, however, you won’t immediately see the full price for the vehicle. Instead, Tesla gives you the “after savings” price, which includes the $7,500 tax credit, state incentives and potential gas savings. Now, Tesla is one of the few automakers that can actually claim the revamped tax credit in its entirety, alongside GM’s and Ford’s electric models, the latter of which can at least claim a partial credit if not the full amount.
Factor in available credits and the price after the dust settles is closer to about $30,000, rather than nearly $44,000. With the Standard Range Model Y, Tesla hopes it can shore up after a slower-than-expected third quarter (per Automotive News). This car and the Model 3 Standard Range also likely use cheaper LFP, or lithium-iron phosphate, batteries to manage better margins on the cheaper vehicles, while pushing higher delivery figures in the fourth quarter.
Tesla has tweaked pricing across its lineup several times this year, even dropping the Model X under $80,000 to take advantage of the federal tax credit. Even the high-performance Model X Plaid, which was more than $140,000 with destination last year, is down to $91,380.
Soon enough, Tesla should launch an updated Model Y alongside the refreshed Model 3, which is already available to order in Europe. The ‘Highland’ Model 3 hasn’t yet made it to North America, but we should see it in the coming months and the Y should follow shortly thereafter. Since the facelifted car is on the horizon, now may be the best time to snag a deal on a new order or one of the cars available in Tesla’s inventory.