Tesla has released its most affordable vehicle yet.
The company quietly added a new option to the Model Y page on its site.
This Model Y is currently one of the best-selling cars in the world, and now it’s available as a rear-wheel drive that’s surprisingly affordable.
The Model Y RWD costs $43,990 but comes with a significant tax credit.
After the full credit of $7,500, customers will pay as low as $36,490 for the vehicle.
In a surprise move, the all-wheel drive Model Y was discontinued last month.
This RWD model serves as its replacement.
But because it has one fewer motor it works out to be a $3,750 cheaper alternative.
There are multiple reasons for this lower price.
One is the speculated use of Tesla’s cheaper lithium iron phosphate (LFP) battery.
These batteries cost less to make and are more durable than nickel-manganese-cobalt cells.
This model also can’t get the 7-seat configuration which is available with other Model Ys.
Otherwise, there are no visible differences.
It has a range of 260 miles while the AWD could go for 279 miles on a single charge.
The RWD car can go 0-60 in 6.6 seconds, which is 1.6 seconds faster than the Model Y AWD.
Customers are being encouraged to grab their Model Ys at this price, which is the cheapest the car has ever been in the US.
By the end of 2023, buyers may not have access to such a generous tax credit.
Buyers are also still required to pay extra if they want their cars to have Enhanced Auto-Pilot and Full Self-Driving.
But even so, this Model Y is a great deal.
It was recently revealed that Tesla has not met its delivery expectations this year.
Perhaps this affordable model was a last-ditch effort to turn sales around.