Tesla has introduced a cheaper Model Y RWD with a base price of $43,990 on its US website. This new model replaces the Model Y AWD, which was discontinued last month. The RWD model is equipped with one fewer motor and a cheaper battery, making it more affordable. With the $7,500 US Federal EV Tax Credit, the post-credit base price of the Model Y RWD is $36,490. It is believed that the new model utilizes Tesla’s cheaper Lithium-Iron-Phosphate (LFP) battery, offering a range of 260 miles. However, LFP batteries have lower energy density and less range compared to Nickel-Manganese-Cobalt (NMC) cells.
The Model Y RWD has a 0-60 time of 6.6 seconds, slower than the previous Model Y AWD. Additionally, the 7-seat configuration is not available for this model. The US version of the Model Y RWD seems to be similar to the Chinese version, which has been available since 2021. This new offering could be the cheapest Model Y ever available in the US, especially when combined with state or regional incentives on top of the federal tax credit. However, the Inflation Reduction Act specifies that the new EV tax credit requires batteries to be manufactured outside of China, potentially affecting Tesla’s access to the federal tax credit.
Deliveries for the Model Y RWD are estimated to begin in “Oct-Nov 2023.”
