Tesla has added a new all-wheel drive (AWD) version of its Model Y to its U.S. lineup, according to the automaker's online vehicle configurator. The company is listing the base AWD Model Y at $41,990, and a premium AWD variant at $48,990.
The premium version is distinguished by upgraded interior finishes and an enhanced suspension package. Tesla's site also highlights front and rear lightbars on the premium model, along with a modest improvement in the vehicle's claimed driving range and performance when compared with the standard Model Y.
The Model Y remains Tesla's best-selling car and is counted among the world's top-selling electric vehicles. Despite that standing, reporting on the automaker's sales trends shows a decline in deliveries for the Model Y and for Tesla's broader vehicle portfolio over the past two years. That weakening has been attributed to increased competition in the electric vehicle market and a decline in consumer sentiment toward the company tied to CEO Elon Musk's political affiliations.
Earlier moves by Tesla included the 2025 introduction of lower-cost, pared-down versions of the Model Y. Those cheaper variants were intended to broaden the vehicle's appeal, but, according to subsequent observations, they produced little measurable lift in sales.
Separately, CEO Elon Musk has indicated that Tesla will discontinue production of the S and X models as the company reorients some of its focus toward robotics. That strategic shift was described by Musk as a move away from those particular vehicle lines.
Context and market implications
The new AWD Model Y entry point and the premium trim expand Tesla's pricing and feature set within a key model range. The changes arrive against a backdrop of softer vehicle demand for the company and strategic adjustments in product offerings announced by leadership.
Availability
The new AWD configuration and the premium option are listed on Tesla's website for customers in the United States; the posted prices are $41,990 for the base AWD Model Y and $48,990 for the premium AWD Model Y.