The Tesla Model Y Just Got Even Cheaper

The Long Range Rear-Wheel Drive model starts at $46,630 before the $7,500 federal tax credit.

2025 Tesla Model Y

Photo by: Tesla

Anthony Alaniz

By: Anthony Alaniz

May 7, 2025 at 9:43am ET

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Tesla’s new Model Y went on sale in the United States just a few months ago, and it was expensive. The Launch Series cost $60,000, but Tesla discontinued it in early April and introduced a cheaper variant for $11,000 less. Now, an even more affordable variant is available that starts at just under $40,000 with the federal tax credit.

The new Model Y Long Range Rear-Wheel Drive starts at $46,630, including the destination and order fee. That's $4,000 cheaper than the dual-motor, all-wheel-drive version. The single-motor Y has an EPA-estimated range of 357 miles, a 125-mile-per-hour top speed, and a 5.4-second 0-60 time. Nineteen-inch wheels are standard.

Photo by: Tesla

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You can upgrade to 20-inch rims, but the estimated max range dips to 344 miles—and cost $2,000 more. Full Self-Driving (Supervised) is an $8,000 option, while the tow package, which allows the electric crossover to pull up to 3,500 pounds, is another $1,000. Stealth Gray paint is the standard exterior color, but customers can pay $1,000 for white or blue, $1,500 for black, and $2,000 for red or silver.

The cheaper Model Y is nice, but it’s still not the $25,000 affordable EV Tesla has been promising. That model was supposed to launch sometime this year, but the most recent reports suggest Tesla has delayed the project once again. Tesla’s cheapest cars is still the Model 3, which starts at $44,130, and comes with up to 363 miles of range.

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