Tesla has started taking orders for its cheaper rear-wheel drive Model Y in the US. The $45,990 vehicle costs $37,490 after federal tax subsidies (as long as they still exist ), making it the second-cheapest EV in the company’s lineup after the RWD Model 3.

Tesla is launching a cheaper Model Y with more range and rear-wheel drive. The new trim costs $4,000 less while offering 30 more miles of range overall. It’s available now with all of the same features as the LR AWD version.

Tesla has started offering a cheaper configuration of its refreshed 2025 Model Y electric vehicle in the US. As first noticed by Electrek, you can now get a Long Range Rear-Wheel Drive Model Y in the US with prices starting at $37,