Tesla Just Shook Up The Model Y Range, And EV Buyers On A Budget May Not Be Happy

Just a few weeks ago, Tesla introduced a new version of the Model Y in the European markets, arming it with a larger battery pack and serving it in the rear wheel drive (RWD) configuration. Of course, a price hike was also dished out, but the carmaker promised a lower cost per kilometer with its latest ride. Tesla has now introduced this variant in the U.S. market, but in doing so, the company also axed the model that was available at a lower sticker price.

The official Tesla website now lists a Long Range Rear-Wheel Drive model priced at $44,990. So far, the cheapest Model Y came in at $42,990. However, the prices have been fluctuating over the past few quarters, in both the US as well as Europe. For folks concerned about the price hike, the new entry-level Model Y still qualifies for the federal EV tax credit. With credits applied, the asking price of the car comes in at $37,490. And factoring in Tesla's gas-saving claims, the net effective value comes down to $31,490.

Will everyone be okay with the higher asking price, even though it serves a 20% gain in the range for approximately a 4% rise in the sticker price? Well, enthusiasts who are more concerned with daily short-range urban commutes won't be pleased with the change. But as the proverb goes, the world barely serves a free lunch, even though it may look like a delicious surprise.

The biggest difference between the new configuration and the model it replaces is the range. So far, the entry-level Model Y could only deliver 260 miles on a single charge. The update, thanks to a larger battery pack inside, can go up to 320 miles. That translates to a range gain of up to 60 miles for an additional $2,000 that buyers put on the billing desk.

Also, EV enthusiasts who can absorb the price hike sting with some aesthetic upliftment will be glad to know that the Model Y Long Range RWD can now be draped in the Quicksilver shade. For an additional $2,000, of course.

Tesla CEO Elon Musk mentioned on X, the platform formerly known as Twitter, that the Model Y units rolling off the assembly lines over the past few months come with larger battery packs. That means they can theoretically touch the 320-mile range threshold of the new Long Range RWD model, even though buyers paid the lower price for the now-defunct entry-level model.

There isn't going to be a free expanded range treat. Musk notes that to get more range out of their old Model Y's battery pack, they will have to pay anywhere between $1,500 and $2,000 depending on the battery pack and the range gain their car is getting. However, that facility doesn't seem to be available at the moment, with Musk noting that Tesla is currently working with regulatory agencies to enable the range boost system, likely via software update.