Tesla has rolled out a new All-Wheel-Drive version of the Model Y in the United States, priced at $41,990. The company has now put a fifth configuration into its most popular crossover, and it is clearly pushing more choice into this single model line.
The new Model Y AWD is rated at 294 miles of range, with a top speed of 125 mph and a 0-60 mph time of 4.6 seconds. It comes in just above the Rear-Wheel-Drive Model Y at $39,990, so the price gap is fairly narrow.
For an extra $2,000, buyers get dual motors and improved traction, and that is likely to appeal to drivers in cold-weather states and those who want stronger performance without stepping into the higher trims.
Five-model lineup for Model Y
With this launch, the U.S. Model Y family now has five versions. Together, these cover a wide band of prices and performance, and they push the Model Y deeper into the role once shared with the Model 3.
Model Y AWD now available in the US & Puerto Rico
— Tesla North America (@tesla_na) February 3, 2026
Starts at $41,990 w/ 294 mi of rangehttps://t.co/OtbBOTYm3G pic.twitter.com/AuZbcxYAMe
The new AWD slot fits into what Tesla labels as its “Standard” offering. These Standard versions keep a shorter feature list and focus on core driving hardware. By contrast, the Premium trims step up with extra features, richer interiors, and more comfort gear, and they seek to catch buyers who want a more complete package.
Standard trims usually omit ventilated front seats, heated rear seats, rear climate screens, premium audio with subwoofers, and more advanced suspension hardware. Premium versions, by comparison, tend to add full vegan leather upholstery, additional speakers, upgraded glass, and suspension tuning aimed at better ride and body control.
Tesla is also preparing to end production of the Model S and Model X, two vehicles that once stood at the top of its range. Elon Musk has confirmed that the Fremont, California plant will stop building them and will shift that space to new programs.
Even so, some customers are unhappy with the move. Many larger families used the Model X as a three-row option, and they now question what will fill that gap. Tesla has not announced a direct replacement SUV in that size class, and the Model Y does not offer the same space or seating layout.
Tesla is also pushing hard into self-driving ride services. The company is developing its Cybercab robotaxi, a small two-seat vehicle with no steering wheel or pedals, built to run only on its Full Self-Driving system.
The new Model Y AWD at $41,990 fits into this larger shift. It adds another rung in the price ladder of Tesla’s highest-volume model, at the same time the company retires two older flagships and redirects factory capacity to robots and robotaxis.
However, this fifth Model Y variant tightens Tesla’s focus on a smaller set of vehicles that support both current sales and its longer-term bet on autonomy.
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