Just days after announcing the retirement of its Model S and Model X, Tesla has quietly reshuffled its lineup with a new all-wheel-drive option and a curious rebranding that has left industry observers scratching their heads.
The electric vehicle maker has introduced a more affordable Model Y All-Wheel Drive variant, priced around $43,000 with an EPA-estimated range of 294 miles.
The new option sits between the base rear-wheel-drive Model Y listed at around $41,000 and the premium rear-wheel-drive version priced at around $46,000, giving customers a middle-ground choice – allegedly with better traction and performance.
Model Y AWD now available in the US & Puerto Rico
Starts at $41,990 w/ 294 mi of rangehttps://t.co/OtbBOTYm3G pic.twitter.com/AuZbcxYAMe
— Tesla North America (@tesla_na) February 3, 2026
The dual-motor setup cuts the zero-to-60 mph time to 4.6 seconds, according to InsideEV.com, more than two seconds faster than the rear-wheel-drive version despite the added weight.
The company dropped the “Standard” designation from its entry-level Model 3 and Model Y trims. Base models are now labeled “Rear-Wheel Drive” or “All-Wheel Drive,” while the better-equipped versions continue to carry the “Premium” and “Performance” names.
The naming change means Tesla’s cheapest models no longer have a trim level, only a drivetrain description.
Like other base Model Y variants, the new AWD version will not have several features found on pricier trims. Buyers won’t get FM radio, a rear touchscreen, power-adjustable steering wheel, heated rear seats, adaptive high beams, or those trendy panoramic glass roofs.
The model changes come at a challenging time for Tesla, as Chinese automaker BYD dethroned Tesla as the world’s top seller of electric vehicles, as The Dallas Express previously reported.
By offering all-wheel drive at a lower price point, Tesla may attract buyers in northern states and mountain regions where winter driving conditions make dual-motor powertrains more appealing.
The timing suggests Tesla is trying to fill the gap left by the upcoming departures of the Model S and Model X, previously covered by DX, while seemingly streamlining its manufacturing focus toward the Optimus robot project and autonomous driving.
