Tesla's Model Y SUV Is Now Cheaper: How Much Does It Cost & Can You Tow With It?

Tesla has lowered the pricing for its popular Model Y electric SUV, but the savings are less significant upon closer inspection. The new Model Y Long-Range All-Wheel Drive carries a $48,990 MSRP on Tesla's website, considerably less than the Launch Series Long Range AWD variant that debuted in early 2025 at $59,990. The cheaper Model Y goes from zero to 60 mph in 4.6 seconds thanks to dual electric motors, and the battery has enough juice to deliver 327 miles of EPA-estimated range. Moreover, the sub-$49k Model Y is no slow poke since it has a 125 mph top speed.

However, the new Model Y's $48,990 base price does not include Tesla's Full Self-Driving (Supervised) software, which costs an extra $8,000. Interestingly, the more expensive Launch Series came standard with full self-driving. If you do the math, the cheaper Model Y will cost $56,990 with Tesla Autopilot installed, which is $3,000 less than the Launch Series. We're trying to say that the more affordable Model Y provides more bang for the buck if you don't add the self-driving software, which is most likely fine for buyers concerned about the system's reputation for being involved in a growing number of road accidents.

The updated Tesla Model Y (codename: Juniper) is a capable hauler with the optional $1,000 tow package. It includes a high-strength steel tow bar (with a two-inch hitch receiver and a seven-pin standard connector), a trailer harness, and a tow mode software package. The package unlocks a max towing capacity of 3,500 pounds, which is relatively decent for an electric crossover. But you should be looking at a Ford F-150 or Chevy Silverado if towing prowess is a priority, or possibly the Tesla Cybertruck and its 11,000-pound towing capacity.

For the price, the $48,990 Tesla Model Y includes 19-inch Crossflow wheels (wrapped in all-season tires) and a five-seat & all-black interior. The standard features include a 15.4-inch infotainment touchscreen and an eight-inch touchscreen for the second row. The new Model Y scores high on practicality with its power-reclining second-row seats, hands-free trunk, and up to 76 cubic feet of cargo room. The Juniper update includes refreshed styling cues like a front LED light bar, updated suspension components, and a distinctive rear light bar with an "indirect reflective design," said Tesla.

Potential buyers of the now-cheaper Tesla Model Y Long-Range AWD are eligible for up to $7,500 in tax credits, which means more savings when applicable. We expect Tesla prices to drop further despite Elon Musk claiming that the EV stalwart won't be spared entirely from U.S. President Trump's auto tariffs. If the new Model Y's more affordable price is still insufficient persuasion to get your hands on a Tesla, alternatives like the Hyundai Ioniq 5, Kia EV6, and Honda Prologue may be just what the doctor ordered.