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Tesla Expands Model Y Lineup With $41,990 AWD in U.S. as 'Premium' Naming Spreads

The price-led reshuffle targets buyers seeking lower entry costs in a cooled EV market.

Overview

  • Tesla added a new Model Y All‑Wheel‑Drive in the U.S. at $41,990 with a 294‑mile EPA range and 0–60 mph in 4.6 seconds, bringing the lineup to five trims.
  • The new AWD sits $2,000 above the $39,990 Rear‑Wheel‑Drive version and below the Premium grades, trading stronger traction and acceleration for less range than RWD.
  • Tesla has dropped the 'Standard' badge in the U.S.; Australia and New Zealand now use 'Premium' naming for better‑equipped grades with specifications and pricing unchanged and no plans to offer decontented Standard models.
  • In India, Tesla launched a Switch and Save offer on Model Y with up to ₹3 lakh exchange bonus, indicative EMIs from ₹49,000 with a ₹6 lakh down payment, a complimentary home charger, and eligibility contingent on delivery by March 31, 2026; Spinny customers can get up to ₹25,000 extra.
  • Where offered, lower‑priced trims achieve savings by removing features such as the rear touchscreen, power steering column adjustment, ventilated front seats, heated rear seats, ambient lighting, and some exterior light bars.