Tesla Unveils Budget-Friendly Model Y: A Milestone for Affordable EVs

Tesla has launched a new, more affordable variant of its Model Y vehicle in the United States, adding to its lineup of electric vehicles. The electric carmaker's website now lists the long range rear-wheel drive model with a price tag of approximately $44,990, not accounting for a $7,500 federal tax credit.

When the tax credit is included, consumers can purchase the new Model Y for as low as $37,490. This move follows Tesla's strategy to introduce an affordable option for its top-selling electric SUV, a plan that faced delays in production.

However, there has been no price change for the all-wheel drive version of the Model Y, which continues to retail for $48,990 in the U.S. Meanwhile, Tesla has experienced a 13% decline in quarterly sales, the lowest in nearly three years, amid setbacks related to CEO Elon Musk's politics and escalating global competition. The company is slated to announce its third-quarter earnings on July 23.

(With inputs from agencies.)