Factoring in the $7,500 federal EV tax credit, the new Model Y’s price falls to $52,490. The outgoing Model Y Long Range All-Wheel Drive starts at $47,990, or $40,490 after the credit – which President Trump has indicated he will scrap.

Priced at $59,990 before taxes and incentives, the 2025 Model Y Launch Series is $12,000 more expensive than the outgoing Long Range AWD trim. In return, Tesla provides a slight boost in range, with the Launch Series offering an estimated 320 miles per charge compared to the current version's 311 miles.

Elon Musk's Tesla launched a new higher-priced version of the Model Y, its best-selling car, in the United States, Canada and Europe on Thursday, weeks after it was first released in China.