InsideEVs • 2/3/2026

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 AWD model features dual motors, which provide significantly improved acceleration compared to the standard rear-wheel drive model, while avoiding the premium features typically associated with higher trims (Electrek, Reuters). In addition to the new AWD variant, Tesla has made a notable change in its naming convention by dropping the "Standard" designation from both the Model Y and Model 3. This rebranding effort indicates that the most affordable versions of these models will no longer carry the "Standard" label. This change has been reported by multiple sources, including InsideEVs and Jalopnik, and occurred relatively quickly after the models were initially introduced (InsideEVs, Jalopnik). The introduction of the new Model Y AWD is part of Tesla's 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 shift in strategy reflects Tesla's commitment to adapting its product lineup to meet the evolving demands of the automotive market (Electrek, Reuters). Overall, the launch of the Model Y AWD and the removal of the "Standard" badge signify Tesla's ongoing efforts to expand its market presence and make electric vehicles more accessible to consumers. The changes highlight Tesla's focus on enhancing performance options while maintaining affordability in its vehicle lineup.
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