Tesla launches cheaper Model Y in the US, but confirms it's ditched the Cybertruck's promised range extender

With one hand Musk gives, with the other he taketh away

08 May 2025, 15:27 · TechRadar

News By Leon Poultney published 8 May 2025

(Image credit: Tesla)

Tesla has just released a more affordable version of its recent refreshed Model Y in North America, which sees the All Wheel Drive Long Range variant joined by a single motor version that now costs $44,990 – $4,000 less than the faster and more powerful option.

Since going on sale in the US, Tesla only offered the refreshed Model Y in a fully-loaded Launch Edition model, which came with exclusive paint colors, a rear spoiler and an aerodynamically optimized alloy wheel finish, but it cost a staggering $60,000.

That car was then joined by a cheaper Long Range All Wheel Drive variant that started at $49,990, but many customers were crying out for an even more affordable option that might have compromised on the performance that dual motors provide, while still offering the most generous battery range... 357 miles in total.

As a reaction to a general cooling of demand for Tesla vehicles in the US and Canada – with Electrek reporting that the company hasn't been enjoying its typical backlog of orders for new Model Y since it launched – the cut-price EV has arrived at a pivotal moment.

However, the Long Range Rear Wheel Driver version has been on sale in Europe and China for a number of months, where sales have continued to plummet.

According to CNN, April sales were down 62% in the UK, 67% in Denmark and 81% in Sweden. Sales from its plant in Shanghai fell 6% from the previous year in April.

Perhaps the damage has been done and no matter how much Musk chooses to drop his prices, customers simply don't want to be seen in a Tesla.

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