Cheapest Model Y ever? Tesla starts selling Model Y RWD in US for $44k
Tesla has updated its US website to add a cheaper Model Y RWD with a base price of $43,990 which, after incentives, might make it the cheapest Model Y ever available in the US.
The new model “replaces” the Model Y AWD, previously the cheapest trim at a base price of $47,740, which was discontinued last month in a surprise move.
But this model is rear-wheel drive rather than all-wheel drive, so one fewer motor is a money-saver for those who don’t need two. It also seems to use a cheaper battery.
As a result, the new Model Y RWD starts at $43,990, $3,750 cheaper than the version discontinued last month. Plus, the model still qualifies for the $7,500 US Federal EV Tax Credit, which means a post-credit base price of $36,490.
The new model seems to use Tesla’s cheaper Lithium-Iron-Phosphate (LFP) battery.
LFP batteries are cheaper and more durable than the more common Nickel-Manganese-Cobalt (NMC) cells, but have lower energy density and therefore less range for a given weight/volume of battery. They also have the benefit of using no cobalt, which is a conflict mineral.
The new “standard range” Model Y is listed as having a range of 260 miles, as opposed to the previous AWD “standard range” with a 279 mile range, which we think is because of the switch to LFP batteries.
However, due to LFP’s greater durability, it is recommended that you can charge the battery to 100% every night, as opposed to the recommended 90% daily charge for NMC sells. So the range is sort of a wash except for occasional roadtrip purposes when the NMC car is charged to 100% (though thats really the only time large range numbers matter in the first place). Or, in cold climates, where LFP tends to do worse than NMC.
In addition, the new model has a 0-60 time of 6.6 seconds, as opposed to the 5.0 seconds of the previous Model Y AWD. And one other difference: you can’t get the 7-seat configuration on the Model Y RWD.
The Model Y standard range with LFP battery has been available in China since 2021, and Tesla just updated it yesterday so that the base model has a 0-62mph time of 5.9 seconds as opposed to the previous 0-62mph time of 6.9 seconds (which would just about coincide with a 0-60 time of 6.6s).
So it’s a little strange that the “new” US model seems to be similar to the “old” China model, at least for the time being.
Tesla has also been selling an LFP Model Y in Canada since earlier this year.
Cheapest US Model Y ever?
This $36,490 post-incentive price is likely the cheapest price for the Tesla Model Y in the US yet.
Previously, Tesla had offered the Standard Range as low as $39,990, but at the time it did not qualify for the tax credit as Tesla’s credits under the previous law had run out. Plus, it only appeared on the site for orders for a couple weeks, showing up in early January 2021, then getting a price cut in February before being removed from the configurator a week later. It was supposedly still available “off menu” as a custom order for a while.
Needless to say, the situation with this car has been confusing.
So now – assuming these cars actually get made and delivered this time around – we might see some new Model Ys being bought for even under $30k, if the right buyer can take advantage of the right state or regional incentives on top of the federal tax credit.
But that might not last for long, as the Inflation Reduction Act specifies that the new EV tax credit requires that batteries be built outside of China – and Tesla’s LFP batteries currently are manufactured in China. So by the end of the year, we might see it lose access to the federal tax credit, or see that credit reduced.
Deliveries are set to begin in “Oct-Nov 2023” according to Tesla’s site, so there could be a lead time of up to 8 weeks for orders happening now.
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On today’s extreme episode of Quick Charge, we’ve got the most affordable new EV in America packing 255 miles of range, sub-30 minute charging, V2H support, and more – all that for a price about $10,000 LESS than that new “affordable” Tesla.
We’ve also got specs for the all-new, all-electric Ferrari Elettrica and a world’s first, hydrogen-powered autonomous farm tractor from Kubota.
Today’s episode is brought to you by Climate XChange, a nonpartisan nonprofit working to help states pass effective, equitable climate policies. The nonprofit just kicked off its 10th annual EV raffle, where participants have multiple opportunities to win their dream model. Visit CarbonRaffle.org/Electrek to learn more.
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Momentum, the lifestyle-focused urban bike brand under Giant Group, has just launched the latest version of its popular Vida E+ electric bike – and this one’s all about making e-biking smoother, safer, and more accessible to riders of all experience levels.
The updated Vida E+ features a new 500W SyncDrive Move S motor offering 60Nm of torque and pedal assist up to 28 mph, designed to provide natural-feeling power whether you’re cruising to work or just exploring around town. The system uses a combination of sensors to analyze torque, speed, and cadence, automatically adjusting power output to match your pedaling effort.
According to Momentum, the motor engages with as little as 4Nm of pedal pressure and just 10° of crank movement, giving riders what they describe as an ultra-smooth and effortless start every time.
A new optional throttle adds another layer of convenience, letting riders cruise at speeds up to 20 mph without pedaling, which should be perfect for hills, traffic-heavy starts, or when you just want to relax and take it easy on the way home. The bike’s EnergyPak 700 battery provides up to a claimed 55 miles (88 km) of range on pedal assist or 43 miles (69 km) on throttle-only riding.
The Vida E+ also leans hard into comfort and safety. It sports a low-step aluminum frame for easy on-and-off, an 80 mm suspension fork, and wide 26×2.4-inch tires for stability and plushness. Four-piston hydraulic disc brakes ensure solid stopping power, while a new automatic motor cutoff feature stops assistance as soon as the brakes engage. The bike is UL 2849 certified, meaning it meets top-tier safety standards for batteries and electronics, which is a growing priority in the e-bike world as more cities and states consider requiring safety certification as a prerequisite.
With support for up to 300 pounds (136 kg) total load and optional racks front and rear, the Vida E+ is also built for everyday utility. And on the tech side, momentum’s RideControl app lets riders fine-tune speed and assistance, lock or unlock the bike electronically, and monitor battery health.
The new Momentum Vida E+ is available now through Giant Group’s nationwide dealer network with an MSRP of US$2,480.
Returning from a recall on its previous bike, Giant Group will now have an opportunity to see how the new version of the Momentum Vida E+ will fare.
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VW’s US EV lease deals just went from hero to zero. Federal tax credits are now dead, the automaker has wiped out up to $12,000 in lease incentives on the ID.4, and ended $10,500 in discounts on the ID. Buzz. The move bucks the trend as other brands continue to sweeten their EV lease offers.
As of September 30, 2025, Volkswagen offered up to $12,350 in lease cash on the ID.4, depending on configuration. That included a $7,500 federal lease tax credit for lessees as Bonus Customer Cash, plus $3,500 to $4,850 in Dealer Lease Cash. It made the ID.4 one of the top EV lease deals around.
On October 1, those incentives vanished. While the ID.4 still has a 0% APR equivalent lease rate, drivers lost more than $12,000 in savings overnight. The ID. Buzz took a similar hit. Last month, the 2025 ID. Buzz offered $10,500 off MSRP between the $7,500 tax credit and $3,000 Dealer Lease Cash. Now, almost all lease cash is gone. VW Credit is offering just $750 in Dealer Lease Cash, and weirdly, not on models with two-tone paint. According to CarsDirect’s lease calculator, the lowest-priced ID. Buzz trim now carries an effective monthly cost topping $1,000 — a considerable jump.
For comparison, the ID. Buzz Pro S was previously advertised at $589 a month for 36 months with $5,999 due at signing, or an effective monthly cost of $756.
The ID.4 lease once cost just $233 a month, making it one of the cheapest EVs to lease. According to updated estimates, that figure is now north of $800 – that’s hair-raising.
Meanwhile, VW’s rivals are going in the opposite direction. Ford extended its Mustang Mach-E lease deals through early January. Subaru’s updated 2026 Solterra still qualifies for the $7,500 lease credit, and Jeep replaced the expiring EV lease credit with equivalent bonus cash.
If you really want a Volkswagen, though, there’s some good news: financing deals haven’t changed. The 2025 ID.4 continues to offer 0% APR for 72 months, and buyers of the ID. Buzz can still get up to $3,250 in Bonus Customer Cash through November 3, a perk unavailable to lessees.
It kinda seems like VW doesn’t want to lease their EVs anymore…?? Let me know your thoughts in the comments below.
Read more: From $189 a month: 5 of the best EV lease deals in October
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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