Tesla Reduces Model Y Price by $11,000 Following Trim Discontinuation

Significant Price Drop for the Tesla Model Y

Tesla has significantly lowered the price of its most sought-after vehicle. The company recently phased out the Model Y Launch Series trim, leaving the Long Range All-Wheel Drive version as the sole option. Priced from $50,380 with destination fees included, this new variant is $11,000 less expensive than the previous model. However, it comes with some omitted features.

Available Features and Options

The Full Self-Driving capability, previously standard on the Launch Series, is now an optional add-on priced at $8,000 for the Long Range All-Wheel Drive model. Additionally, customers can choose to add a tow hitch for an extra $1,000, enabling the vehicle to tow up to 3,500 pounds. Selecting a color other than black will incur an additional cost ranging from $1,000 to $2,000, depending on the chosen shade.

Wheel Choices and Range

Prospective buyers can select between two wheel sizes. The standard 19-inch crossflow wheels come equipped with all-season tires and offer an EPA-estimated range of 327 miles. Alternatively, opting for the 20-inch wheels will reduce the estimated range to 303 miles.

Performance Adjustments

According to InsideEVs, Tesla claims the Long Range All-Wheel Drive Model Y can accelerate from 0 to 60 mph in 4.6 seconds, which is half a second slower than the Launch Series variant. Tesla has not clarified whether this change is due to reduced power output, torque, or software-based acceleration limitations.

Tax Benefits Remain Available

Customers will be pleased to know that the Model Y continues to qualify for the U.S. federal tax credit of $7,500. This effectively lowers the starting MSRP to $42,880 for eligible buyers.

Potential for Further Price Reductions

There is a possibility that prices may decrease even further. Previously the world's best-selling vehicle, the Model Y has experienced a sales downturn partly due to CEO Elon Musk's controversial political actions, which have negatively impacted Tesla's stock. Historically, Tesla has reduced prices to boost sales volume, a move that has upset existing owners due to the subsequent depreciation of their vehicles. It remains conceivable that Tesla might implement similar pricing strategies again.