Tesla Launches New Rear-Wheel Drive and All-Wheel Drive Base Models of Model Y in the United States

On February 3rd (local time), Tesla launched a new entry-level all-wheel-drive version of the Model Y in the US market, with a starting price of $43,630 (including shipping), making it the fifth available configuration for the model. This version is positioned between the Rear-Wheel Drive base model and the Premium Rear-Wheel Drive model, with a starting price $2,000 higher than the Rear-Wheel Drive base model and $3,000 lower than the Premium Rear-Wheel Drive model. On the same day, Tesla simultaneously retired the "Standard" naming, renaming the former Model Y Standard to Model Y Rear-Wheel Drive.

The newly launched Model Y All-Wheel Drive is equipped with a 69.5 kWh battery pack, offering an EPA estimated range of 294 miles, a 0–60 mph acceleration time of 4.6 seconds, and a top speed of 125 mph. This version does not feature a panoramic glass roof, has lower-spec wheels and lighting systems, simplified infotainment features, and limited fast-charging capability – adding up to 152 miles of range in 15 minutes. Its powertrain parameters are consistent with the Premium AWD, but its battery capacity and charging performance are the same as the Rear-Wheel Drive.

Image source: Tesla

This product line adjustment occurred approximately one week after Tesla announced the termination of Model S and Model X production. The company plans to shift production capacity at its Fremont, California factory to the manufacturing of the Optimus humanoid robot. The official statement indicates this move is intended to concentrate resources on advancing autonomous driving technology and the future implementation of autonomous mobility services. The Model 3, Model Y, and Cybercab have been explicitly designated as the core vehicles for this strategy, while the Cybertruck will continue to serve specific purposes such as local freight.

Additionally, according to public information, Tesla CEO Elon Musk confirmed on February 3rd that his company SpaceX and artificial intelligence company xAI have completed their merger, forming a vertically integrated platform that combines AI, rockets, satellite internet, communications, and real-time data capabilities.