Tesla has announced changes to its Model Y lineup, including the elimination of the Rear-Wheel Drive (RWD) variant and the introduction of a new Long Range RWD variant. The EV giant also recently reduced the price of the Model Y RWD by $2,000 to $42,990, which was its lowest list price ever. The Long Range RWD will now start at $44,990.
The Model Y LR RWD offers a range of 320 miles, an improvement from the RWD’s 260 miles for an additional $2,000. Elon Musk announced on social media that recent RWD Model Y vehicles have extra range that can be unlocked for $1,500-$2,000. The Model Y LR All-Wheel Drive has a range of 310 miles but offers faster acceleration, starting at $47,990.
In addition to changes in pricing and model variants, Tesla also saw a jump in stock price last week. Shares rose by 7.7%, with the stock moving above the 10-week line that had previously served as resistance in 2024. Despite this positive movement in stock price, concerns were raised about Tesla’s strategy and long-term growth prospects after Elon Musk made changes within the company, including axing the Supercharger and new vehicles teams.
One significant change is that the Long Range RWD is eligible for a $7,500 IRA tax credit, reducing its effective price to $37