Tesla has introduced a new, more affordable version of its best-selling electric SUV-the Model Y Long Range Rear-Wheel Drive (RWD)-in the United States.
Starting at $44,990 (before incentives), this variant delivers an impressive 357 miles of EPA-estimated range, outpacing the AWD version by about 30 miles. Deliveries are expected to begin in the next three to five weeks, according to Teslarati.
2026 Model Y RWD Price and Features
The new Model Y RWD comes after Tesla refreshed the Model Y lineup earlier this year. Tesla launched a fully-loaded AWD “Launch Edition” at $60,000, then a regular AWD version at $49,000.
The RWD model is now the most affordable way to own the updated Model Y in the US. The price drops to $37,490 after applying the $7,500 federal tax credit.
While the RWD model offers a longer range, it uses a single-motor setup, making it slightly slower to accelerate from 0 to 60 mph in 5.4 seconds versus 4.6 seconds for AWD. The RWD trim also features the same upgraded interior as the pricier models, including acoustic glass and heated/cooled seats.
This move comes as Tesla aims to boost demand and maintain production rates amid softening sales. The company is expected to expand production of both RWD and AWD variants at its Fremont and Austin factories soon.
For buyers, the new Model Y RWD offers a strong mix of range, features, and value-making it a compelling option for those seeking a premium electric SUV at a lower price point.