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Tesla Launches $41,990 Model Y AWD Variant: Affordable Power for US Buyers

Tesla Launches $41,990 Model Y AWD Variant: Affordable Power for US Buyers
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New Affordable AWD Option Enters Tesla's Bestselling Lineup

Tesla has released a new all-wheel-drive variant of the Model Y SUV in the United States, priced at $41,990 before incentives. This configuration slots between the entry-level rear-wheel-drive model and higher Long Range trims, offering enhanced traction and performance at a competitive price point.

Performance and Range Specifications

The new Model Y AWD achieves 0-60 mph in 4.6 seconds with a top speed of 125 mph. It provides an EPA-estimated range of 294 miles, powered by dual motorsone front induction AC (117 hp, 124 lb-ft) and one rear permanent-magnet synchronous AC (around 280 hp, 265 lb-ft), combining for substantial output. All 2026 Model Y variants feature a 75-80 kWh battery pack supporting up to 250 kW DC fast charging, adding up to 169 miles in 15 minutes on Superchargers.

  • Acceleration: 4.6 seconds 0-60 mph
  • Range: 294 miles (EPA est.)
  • Top Speed: 125 mph
  • Drive: Dual Motor All-Wheel Drive
  • Charging: 250 kW max; 169 miles in 15 min

Comparison to Other 2026 Model Y Trims

This AWD trim addresses a key gap in Tesla's lineup by providing all-wheel grip without jumping to pricier Long Range models starting around $50,630. The base Rear-Wheel Drive offers 321-357 miles but lacks AWD, while Long Range AWD hits 327 miles with 397 hp and 3.8-second acceleration. A Performance variant delivers 460-461 hp and 3.3 seconds 0-60, but at a higher cost.

TrimPrice (Base)Range (mi)0-60 (s)Horsepower
RWD Standard/Premium$~36,990-$44,990321-3575.4-6.8300-326
AWD New$41,9902944.6~375
Long Range AWD$50,6303273.8397
Performance$59,990+~3033.3460+

Interior and Tech Upgrades in 2026 Refresh

The 2026 Model Y, including this AWD variant, incorporates Juniper updates: ventilated front seats, redesigned dashboard, ambient lighting, and an 8-inch rear touchscreen for climate and entertainment like Netflix. A 16-inch front touchscreen handles infotainment, with improved Wi-Fi and Phone Key range. Cargo space reaches 76 cu ft, seating up to 7, with 6.6-inch ground clearance and 3,500 lbs towing.

Market Impact and Buyer Appeal

Priced under $42,000, this trim qualifies for federal EV tax credits, potentially dropping effective cost below $30,000 for eligible buyers. It targets families and commuters seeking AWD reliability in snow or rain without premium pricing. Tesla's Supercharger network and over-the-air updates keep ownership costs low, with a 4-year/50,000-mile warranty. In MotorTrend tests, similar AWD models achieved 252 miles real-world range and rapid charging.

Safety features include blind-spot warning, lane departure prevention, adaptive cruise, and Full Self-Driving option for $8,000. Wireless charging and heated steering wheel enhance comfort.

Why This Matters for EV Shoppers

Tesla's move bolsters Model Y's dominance as America's top-selling EV, offering versatile AWD at an accessible price amid rising competition from rivals like Ford Mustang Mach-E or Rivian R2. The 294-mile range suits daily drives, with fast charging for road trips.

Sources: thehindu.com ↗
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