Tesla Model Price: Why is Elon Musk’s “Y” car so cheap? Tesla’s 2025 model spark electric vehicle price impact

Are you a car enthusiast who is planning to buy a new car but has a limited budget? Well, Elon Musk’s Tesla mind makes it easier for you, they sell cars for a lower price now.Tesla has launched a cheaper version of the Y-type electric SUV in 2024. It is the most affordable model since spring 2024. Often, the price of cars is paired with new models due to inflation and upgrades. But this time, according to a USA Today report, Tesla has made the new model cheaper in some cases.
As of May 9, there are only two versions of the 2025 Tesla Model Y-type Y-type, long-distance rear-wheel drive (RWD), with a base price of $44,990, after the federal electric vehicle tax credit of $37,490. In some New Jersey, an additional $2,000 incentive is sold for $35,490.
Long-distance all-wheel drive (AWD) base price is $48,990 after the federal electric vehicle tax credit of $39,390. Unlike in the early years, no performance version is available in 2025.

There are two types of Tesla models for 2025, one with rear-wheel drive (RWD) and the other with all-wheel drive (AWD). The RWD is cheaper and can charge about 357 miles in full. But this is a bit slow, and it takes about 5.4 seconds to go from 0 to 60 mph. The AWD costs more, but it’s faster, reaching 60 mph in just 4.6 seconds. It’s also better on the road, especially in rain or snow, but the distance is about 327 miles. So if you care more about saving money and driving longer, choose RWD. If you want more speed and better control, choose AWD.

Why is Tesla so cheap?

Tesla has lowered the price of the Y-shaped model in recent months. Some possible reasons are that Tesla shares fell from $379.28 to $221.86 between January 2 and April 8. Among the 10 largest electric vehicle markets in Europe, sales of electric vehicles fell by 8. Many people around the world have also begun to have some negative attitudes towards Elon Musk and Tesla. So Tesla is trying to increase interest and stay in the game. One good thing for them is that the “Y” model is made in the United States, so it avoids additional taxes other non-U.S. cars may have to pay. The new 2025 Tesla Model Y has some competition. Cars like the Kia EV6 ($42,900) look sporty. The Hyundai IONIQ 5 ($42,600) is perfect for families. Volkswagen ID.4 $45,095 is big in Europe because it’s very comfortable. Then, the sum of the Chevrolet Equinox EV is the overall best deal. Basically, there are many electric cars now, so buyers have a lot of options besides the Model Y. Despite the controversy surrounding Elon Musk, Model Y still offers solid value. However, it is no longer the only great choice in the electric SUV market. Buyers now have a variety of strong options under $45,000.

FAQ

Q1. Is the 2025 Tesla model cheaper than last year?
A1. Yes, this is the most affordable since spring 2024.

Q2. Which version of the model Y charges more for a single charge?
A2. Rear-wheel drive (RWD) version, up to 357 miles.