Tesla has expanded its U.S. lineup with a Long Range Rear-Wheel Drive (RWD) Model Y, cutting the entry price while boosting highway capability—a tactical move to shore up deliveries amid intensifying competition.

Price & Range Highlights

Pre-incentive Cost: $44,990

After $7,500 Federal Tax Credit: $37,490

EPA-Estimated Range: 357 miles (≈30 miles more than the AWD version)

By adopting a single-motor RWD setup, Tesla maximizes range and qualifies for the full federal credit—making long trips more affordable for everyday buyers.

Performance Trade-Off

0–60 mph in 5.4 seconds vs. 4.6 seconds for the dual-motor AWD

Simplified Drivetrain: Lower production and maintenance costs, offsetting slower acceleration and reduced all-weather traction

While not the quickest off the line, this variant balances efficiency, cost savings, and range—key factors as Tesla navigates a recent 13% drop in quarterly deliveries.

Analyst Sentiment & Price Targets
The introduction of a more affordable trim could prompt analysts to revisit their valuation models. For the latest consensus outlook and target revisions, investors can check the Price Target Summary API, which aggregates current analyst price targets and recommendation trends for Tesla.

What to Watch Next

Delivery Trends: Will the new RWD variant stabilize or reverse the recent decline?

Competitive Reactions: How will legacy automakers adjust their mid-range EV pricing and specs?

Profitability Metrics: Can higher volume offset lower ASPs—insights will emerge as Q2 owner-earnings and margin figures are reported.

By monitoring how analyst targets shift alongside Tesla’s evolving sales mix, stakeholders can gauge whether this budget-friendly Model Y successfully drives both volume growth and sustained profitability.