Tesla launches new affordable Model Y configuration in the U.S.

Tesla has launched another new affordable Model Y configuration in the United States, now adding a fifth version of the all-electric crossover to its lineup, diversifying the car’s options and giving consumers more choices at the time of purchase.

Tesla launched the Model Y All-Wheel-Drive on Monday night, pricing it at $41,990. It features 294 miles of range, a 125 MPH top speed, and a 0-60 MPH acceleration rate of 4.6 seconds.

The vehicle is the second most-affordable configuration of the Model Y, only eclipsing the Model Y Rear-Wheel-Drive, which is priced at $39,990.

The move to expand the Model Y lineup comes just a week after CEO Elon Musk confirmed the company would remove the Model S and Model X from production, making way for manufacturing of the Optimus robot at the company’s Fremont, California, factory.

Tesla has just launched the Model Y All-Wheel-Drive, a new configuration, in the U.S. for $41,990

It has 294 miles of range, a 4.6s 0-60 MPH acceleration rate, and a 125 MPH top speed pic.twitter.com/cyd81m26vB

— TESLARATI (@Teslarati) February 3, 2026

The Model Y All-Wheel-Drive fits the bill of the “Standard” offerings of the vehicle that Tesla launched last year. It is void of many of the more luxurious features, which are available in the “Premium” trim levels, available in Rear-Wheel-Drive, All-Wheel-Drive, and Performance.

The differences between the Standard and Premium configurations can be found in the video below:

@teslarati There are some BIG differences between the Tesla Model Y Standard and Tesla Model Y Premium #tesla #teslamodely ♬ Sia – Xeptemper

With five configurations now available in the Model Y, it certainly seems as if Tesla is attempting to get the vehicle available in more options than ever before.

With the Model S and Model X being removed from production due to their irrelevance to the future and Tesla’s focus on autonomy, diversifying the Model Y portfolio seems to align with the idea that the company is okay with making more variations of its most popular car.

Tesla Model Y Standard: first impressions from a Premium owner

Removing the Model S and Model X and replacing them with a new Model Y configuration is not exactly what fans have been wanting; many have been wondering what Tesla will do to replace the need for a bigger SUV for large families.

Nevertheless, Tesla’s relentless attitude toward solving autonomy and its preparation to launch a self-driving ride-hailing service seem to fit the bill for this move. Soon, it will be the Model 3, Model Y, and Cybercab playing the main parts of this autonomous future. The Cybertruck will be sticking around for other things, like local hauling.

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