Tesla introduces new Model Y variant in US priced at $41,990


The logo of Tesla is seen on a Tesla Model Y during Tesla Inc.'s official launch in Bogota, Colombia, November 20, 2025. REUTERS/Luisa Gonzalez

Feb 2 (Reuters) - ‌Electric-vehicle maker Tesla introduced a new ‌variant of its Model Y ‌vehicle in the United States priced at $41,990, the company's website showed on Monday.

The all-wheel drive ‍variant of Tesla's bestselling ‍Model Y SUV ‌is priced above the cheaper "standard" version.

Tesla launched ‍stripped-down ​versions of the Model Y SUV and Model 3 ⁠sedan in October, priced about $5,000 below ‌the previous base models, as it sought ⁠to defend ‍volumes after the EV tax credit loss.

EV demand has softened across the ‍industry since the end ‌of September, when the Trump administration ended $7,500 federal tax credits, with Tesla also facing rising competition globally.

Tesla CEO Elon Musk said last week that the carmaker would end production for its ‌Model S and Model X sedans, and instead use the space in its California ​factory to make humanoid robots.

(Reporting by Ananya Palyekar in Bengaluru; Editing by Subhranshu Sahu)

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