While other automakers pack their electric SUVs with luxury features, Tesla’s taking a different approach with the Model Y. The company’s strategy emphasizes keeping prices low while maintaining the technology that drivers actually use.
Tesla’s latest Model Y starts at $44,990 for the rear-wheel drive Long Range version. That’s notably cheaper than many electric SUV competitors. The company achieved this lower price by removing luxury touches that many buyers won’t miss. There’s no fancy audio system upgrade available. The interior uses basic materials instead of premium ones. Tesla even eliminated the turn signal stalk, following the pattern from previous models.
Tesla strips luxury features to hit $44,990, making electric SUVs accessible to everyday buyers.
But Tesla kept what matters most to electric vehicle buyers. The Model Y still connects to Tesla’s Supercharger network, adding 169 miles of range in just 15 minutes. It maintains the company’s Autopilot system and offers Full Self-Driving capability. The 15.4-inch center touchscreen remains, and Tesla added an 8-inch rear touchscreen in the 2025 refresh.
Performance hasn’t been sacrificed either. The Model Y accelerates from 0 to 60 mph in 4.6 seconds in Performance trim. Motor outputs range from 295 to 455 horsepower depending on the version. The Long Range AWD model uses an 80.5 kWh battery pack and achieves up to 335 miles of EPA-estimated range. Real-world highway testing shows the AWD version achieves 220 miles of range, while the Performance model reaches 230 miles.
The interior stays practical with a standard five-seat configuration and optional seven-seat layout. Rear seats fold down to create 30.2 cubic feet of cargo space. The Model Y offers 76 cubic feet of maximum cargo capacity when both rows are folded. While the cabin lacks some comforts found in luxury SUVs, it includes essential features like climate controls and adequate storage.
Tesla’s approach targets buyers who want an electric SUV without paying luxury prices. Beyond the purchase price, owners can expect monthly charging expenses between $39 to $57, significantly lower than gas vehicle costs. By concentrating on range, charging speed, and autonomous features while cutting unnecessary extras, the Model Y competes directly with gas-powered SUVs.
The Launch Series starts at $60,000 and includes Full Self-Driving Supervised. All models come with a four-year, 50,000-mile basic warranty and an eight-year, 120,000-mile battery warranty. This strategy makes electric vehicles more accessible to everyday buyers who prioritize technology and efficiency over luxury appointments.