Tesla rolls out new Model Y AWD in the U.S. at $41,990, pushing EV price competition higher

What happened

- Tesla ($TSLA) listed a new Model Y all-wheel drive variant in the U.S. priced at $41,990.

- It sits above the cheaper “Standard” rear-wheel drive trim and continues Tesla’s 2026 playbook: lower entry pricing without waiting for an all-new mass market model.

- With the U.S. EV tax credit no longer available (ended in late September), sticker price matters more again, and price moves ripple across the whole EV category.

Why it matters for markets

- Category pricing reset: A popular, high-volume EV getting more price points can force rivals to respond with discounts or incentives.

- Demand vs margin tug-of-war: Lower prices can help unit volume, but they can also pressure gross margin unl ...