Tesla launches a more affordable version of its updated Model Y in the U.S., undercutting the Launch Series by $10,000.
Tesla has officially introduced a new, lower-priced 2026 Model Y Long Range All-Wheel Drive (AWD) trim in the U.S. market, offering the same performance and range as the Launch Series but at a significantly reduced price.
Contents
- 1 New 2026 Model Y Trim: What’s Changed
- 2 What You Don’t Get With the New AWD Trim
- 3 RWD Model Y Coming Soon?
- 4 Legacy Model Y Discontinued
- 5 Tesla’s Sales Decline and Stock Performance
- 6 Project E41: A Glimpse at Tesla’s Future Plans
- 7 2026 Tesla Model Y Long Range AWD – At a Glance
- 8 Finally: A Smarter Buy for 2026
New 2026 Model Y Trim: What’s Changed
Priced at $49,990, the new Long Range AWD Model Y comes in at $10,000 less than the recently introduced Launch Series, which carried a $59,990 price tag. After applying the $7,500 federal EV tax credit, eligible buyers can bring the price down to $41,490, making it one of the most accessible long-range electric SUVs in its class.
Key Performance Specs (Both Trims):
- EPA-estimated range: 327 miles
- 0–60 mph acceleration: 4.6 seconds
- Top speed: 125 mph
Despite the price cut, the new Long Range AWD retains identical performance metrics to the Launch Series.
What You Don’t Get With the New AWD Trim
The price drop comes with a few trade-offs. Unlike the Launch Series, the new Long Range AWD does not include Full Self-Driving (FSD)—an $8,000 value—or other premium features like a tow hitch. These options must now be added à la carte during the configuration process.
RWD Model Y Coming Soon?
Tesla is rumored to be preparing an even more affordable Rear-Wheel Drive (RWD) Model Y, but as of now, it hasn’t appeared on Tesla’s online configurator or order page.
Legacy Model Y Discontinued
The previous generation Model Y Long Range AWD, which had a starting price of $48,990, has been pulled from both Tesla’s inventory and order pages. It is now only available through the used car market.
Tesla’s Sales Decline and Stock Performance
The launch of the new trim comes amid a turbulent period for Tesla. The automaker reported first-quarter 2025 deliveries of 336,681 vehicles, a 13% year-over-year decline compared to 386,810 vehicles in Q1 2024. Additionally, Tesla’s stock has fallen over 40% year-to-date as of Friday afternoon.
Public protests surrounding CEO Elon Musk’s involvement in the Trump Administration have also negatively impacted consumer sentiment and may be contributing to reduced demand.
Project E41: A Glimpse at Tesla’s Future Plans
According to Reuters, the development of the updated Model Y falls under an internal initiative dubbed Project E41. Tesla reportedly plans to build this refreshed model on existing production lines, with volume production targeted for 2026. The vehicle is also expected to be approximately 20% cheaper to manufacture, contributing to Tesla’s ongoing efforts to improve profitability and reduce EV costs.
2026 Tesla Model Y Long Range AWD – At a Glance
| Category | Details |
|---|---|
| Model Year | 2026 |
| Trim | Long Range AWD |
| Price (Before Incentives) | $49,990 |
| Price (After $7,500 Tax Credit) | $41,490 |
| EPA Range | 327 miles |
| 0–60 mph | 4.6 seconds |
| Top Speed | 125 mph |
| Availability | Now available in the U.S. |
| Not Included | Full Self-Driving, Tow Hitch |
Finally: A Smarter Buy for 2026
The 2026 Tesla Model Y Long Range AWD delivers the same electric performance and range as the Launch Series but at a significantly more attractive price point. By unbundling extras like FSD and the tow hitch, Tesla offers consumers greater flexibility and affordability. As Tesla prepares for broader changes under Project E41, this trim serves as a strategic move to maintain competitiveness in a changing EV market.
