Tesla Unveils Affordable Model Y RWD, Now the Cheapest In The Lineup

EV giant Tesla Inc TSLA has introduced a Model Y rear-wheel drive (RWD) in the United States in place of its previous all-wheel drive (AWD) version.

What Happened: The new vehicle is priced lower than the all-wheel drive version it has replaced by $3,750. The starting price of the vehicle is $43,990, making it the cheapest Model Y trim available.

The new vehicle has an EPA estimated range of 250 miles and can go from 6-60 mph in 6.6 seconds. Like the other versions of Model Y, it is also eligible for an EV tax credit of $7,500.

Why It Matters: Customers can now select from three available trims- the RWD, the Long Range and Performance. Long Range and Performance versions are priced higher at $50,490 and $54,490, respectively.

Tesla dropped Model Y AWD from its website in mid-September. The company did not offer an explanation for the decision.

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