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flag Tesla launched a $41,990 all-wheel drive Model Y in the U.S. to boost affordability amid slowing EV demand and competition.

flag Tesla has launched a new all-wheel drive Model Y in the U.S. priced at $41,990, above its lower-cost rear-wheel drive "Standard" model introduced in October 2025. flag The move supports Tesla’s 2026 strategy to attract budget-conscious buyers amid cooling EV demand and rising global competition, especially from Chinese automakers. flag The company continues to adjust pricing to offset the loss of the $7,500 federal tax credit, which ended in September under the Trump administration. flag Tesla also announced plans to halt Model S and Model X production to repurpose factory space for humanoid robot development.

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