- Tesla launched a new lower-priced Model Y All-Wheel Drive variant in the U.S., priced at $41,990.
- The move expands the entry-level lineup and supports the company’s shift toward simpler, lower-cost vehicles amid cooling EV demand.
- CEO Elon Musk confirmed plans to phase out Model S and X production to make space for Optimus robot development.
- The company’s stock rose over 1% in premarket trading following the announcement.
- Retail sentiment on Stocktwits was “extremely bearish” despite the news.
On Tuesday, Tesla broadened consumer choice by introducing a new, more affordable all-wheel drive variant of its bestselling Model Y crossover in the United States. Consequently, shares of the EV maker rose over 1% in early premarket trading following the announcement.
The new Model Y All-Wheel Drive starts at $41,990, making it the second-cheapest version available. It offers 294 miles of range and accelerates from 0-60 mph in 4.6 seconds, slotting between the base rear-wheel drive and premium trims.
Tesla’s vice president of finance, Sendil Palani, said on X the model targets buyers in colder climates. “The new Model Y AWD is the lowest-priced AWD vehicle we’ve ever sold in North America by a significant margin,” he stated.
This pricing push comes as the automaker reshapes its lineup toward lower-cost “Standard” trims. Meanwhile, CEO Elon Musk confirmed plans to phase out production of the Model S and Model X to free up factory space.
The Fremont facility will shift toward producing Tesla’s Optimus humanoid robot. The company also outlined plans to exceed $20 billion in capital spending to scale new projects like the Cybercab.
Tesla has drawn attention due to the confirmed merger between SpaceX and xAI, though it is not part of the deal. Gary Black of The Future Fund questioned the financial logic of any potential Tesla-SpaceX combination, warning it could cause significant share dilution.
On Stocktwits, retail sentiment for Tesla was “extremely bearish” amid high message volume. Consequently, the stock has risen only 4% over the past 12 months.
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