Tesla kills $41,990 Model Y AWD: all-wheel drive now costs $8,000 more

Tesla has pulled the $41,990 Model Y All-Wheel Drive from its US online configurator. The cheapest dual-motor Model Y you can order now is the Model Y Premium AWD at $49,990, an $8,000 jump. The trim lasted just over nine months. Tesla launched it in early February, and it’s gone without a word from the company. What’s left in the Model Y lineup Here’s what Tesla’s US Model Y design studio lists as of today (prices before the destination fee): Model Y Rear-Wheel Drive: $39,990 (348 miles EPA, 0-60 mph in 6.8 seconds) Model Y Premium Rear-Wheel Drive: $45,990 (355 miles, 5.4 seconds) Model Y Premium All-Wheel Drive: $49,990 (327 miles, 4.3 seconds) Model Y Performance: $57,990 Model Y L Premium (six seats): $61,990 Tesla’s US Model Y configurator on November 13, 2026. The only AWD options left start at $49,990. (Source: Tesla) When Tesla launched the base Model Y AWD in February, it was basically the stripped-down Model Y with a second motor. It had 294 miles of range, did 0-60 mph in 4.6 seconds and kept the same cut-down cabin as the base RWD. At a $2,000 premium over the single-motor version, it was the most sensible AWD pricing Tesla had offered in years. And the AWD trim isn’t the only change. In February, the Premium RWD cost $44,990 and the Premium AWD cost $48,990. Both are now $1,000 higher. Add it up and the cheapest all-wheel-drive Model Y went from $41,990 to $49,990 in nine months. That’s a 19% increase. Rivals still sell AWD crossovers for about $40,000 The timing isn’t great for Tesla’s competitive position. Chevrolet’s 2027 Equinox EV LT 1 AWD starts at $40,295 before destination, with 307 miles of EPA range. Ford’s Mustang Mach-E Select AWD starts at $40,795. Both now undercut Tesla’s cheapest AWD crossover by more than $9,000. If you live somewhere it snows and you were shopping for a new Model Y, the math just got a lot worse. You can still find some base AWD units in Tesla’s inventory, but once those are gone, that’s it. This is also the latest cut in a year of Tesla shrinking its lineup. Elon Musk killed the Model S and Model X in January to free up Fremont for Optimus, and Cybertruck production is winding down. Meanwhile, the most recent new Tesla is the $61,990 Model Y L, which sits at the top of the range, not the bottom. Electrek’s Take We liked this trim. It was the first time in a long time that Tesla treated all-wheel drive as a $2,000 option rather than a huge upsell bundled with a nicer interior, and it put the Model Y right in the price bracket of the Equinox EV and Mach-E with AWD. Now it’s gone, and the Premium trims went up $1,000 on top of that. Tesla didn’t explain either move. It rarely does anymore. There are two plausible reasons. Either Tesla is tight on Model Y build slots and would rather fill them with higher-margin Premium trims, or the cheap AWD simply wasn’t selling. We don’t know which. But both explanations land in the same place for buyers: a more expensive Model Y. And Tesla has a habit of this. The “Standard” name for its cheaper Model Y and Model 3 lasted a few months. The single-motor Cybertruck, the only version that made sense, was gone within days. Cheaper trims show up, get a news cycle, and quietly disappear. That’s a problem for a company whose consumer lineup is shrinking down to two cars. The Model Y is Tesla’s volume. Thinning it out at the bottom is the opposite of what you’d do if growing EV sales were the priority. How long before the $39,990 RWD goes the same way? If you’re buying an EV, powering it with home solar can cut your fuel costs to nearly zero. With electricity rates up almost 10% last year and expected to keep climbing, going solar is one of the best ways to protect yourself against rising costs. And with lease and PPA options, you can do it with zero upfront cost and start saving immediately. If you want to find the best deal, check out EnergySage. It’s a free service with hundreds of pre-vetted installers competing for your business, so you save 20 to 30% compared to going it alone. No sales calls until you pick an installer. Get your free quotes here. FTC: We use income earning auto affiliate links. More.