Tesla launches new Model Y AWD at $41,990 — just $2,000 more than base

Tesla has introduced a new variant of its Model Y in the United States, specifically a Standard All-Wheel Drive (AWD) model priced at $41,990. This new model represents the fifth variant in the Model Y lineup and is positioned just $2,000 above the base rear-wheel drive version. The addition of dual motors in the AWD model provides significantly improved acceleration compared to the standard model, while avoiding the premium features that typically accompany higher trims. The introduction of this new AWD variant comes with a notable change in Tesla's naming convention, as the company has decided to drop the "Standard" designation from both the Model Y and Model 3. This shift indicates a rebranding effort within Tesla's lineup, as the most affordable versions of these models are no longer labeled as "Standard." The decision to remove the "Standard" badge has been highlighted by multiple sources, including InsideEVs and Jalopnik, which noted that this change occurred relatively quickly after the models were initially introduced. The new Model Y AWD is part of Tesla's ongoing strategy to diversify its offerings and appeal to a broader range of customers. By providing a more affordable AWD option, Tesla aims to attract buyers who are looking for enhanced performance without the additional costs associated with premium features. This move aligns with the company's focus on expanding its market presence and making electric vehicles more accessible to consumers.