Tesla launches new Model Y AWD in the U.S. starting at $41,990, drops Standard naming

model y awd

Tesla has expanded its U.S. Model Y lineup with the introduction of a new Model Y All-Wheel Drive (AWD) variant, priced at $41,990, while simultaneously simplifying trim names across the range.

Unfortunately, only the new naming convention applies to the Canadian market, where no new variant has been added, at least for now.

The newly launched Model Y AWD slots in between the entry-level Rear-Wheel Drive (RWD) version and the more expensive Premium trims, giving buyers a lower-cost option for dual-motor traction without stepping up to the full Premium package.

According to Tesla’s configurator, the new AWD model delivers an EPA-estimated range of 294 miles (473 km), notably lower than the base RWD variant at 321 miles (516 km). On the plus side, the new Model Y AWD accelerates from 0–60 mph in 4.6 seconds, making it significantly quicker than the base RWD version that reaches 60mph in 7.2 seconds.

Alongside the new variant, Tesla has officially dropped the “Standard” naming convention in both the U.S. and Canada. What was previously called the Model Y Standard is now simply branded as Model Y Rear-Wheel Drive (RWD), while the new AWD variant is also labeled accordingly.

Updated U.S. Model Y Lineup

With the addition of the new AWD trim, Tesla’s U.S. Model Y lineup now consists of five variants:

  • Model Y RWD – $39,990
  • Model Y AWD – $41,990
  • Model Y Premium RWD – $44,990
  • Model Y Premium AWD – $48,990
  • Model Y Performance AWD – $57,490

The addition of the new AWD variant further fragments the Model Y lineup, suggesting Tesla is looking to maximize sales by filling every possible pricing and performance gap. In Europe, the Model Y is also offered in five variants, but the lineup differs from the U.S. by including a RWD Long Range option.

‘Standard’ versus Premium

While Tesla no longer refers to them as ‘Standard,’ these new base variants are stripped down versions compared to the Premium models.

Under the hood, the base models feature a 69 kWh battery, whereas the Premium upgrades to a larger 78.1 kWh battery. Wheel and exterior differences include 18-inch steel wheels on the Standard compared to 19-inch aluminum ones on the Premium, along with basic LED headlights without adaptive features versus full LED light bars with adaptive high beams, and manual-folding side mirrors against auto-dimming power-folding ones.

Interior and audio enhancements in the Premium consist of a 15-speaker system with subwoofer over the Standard’s 7-speaker setup, all-vegan leather upholstery with heated rear seats and front ventilation instead of a vegan leather-cloth mix with only front heating, power-folding rear seats versus manual, an 8-inch rear touchscreen and center armrest absent in the Standard, and a fully visible panoramic glass roof rather than a fabric-covered one.

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