Tesla Updates Model Y Lineup with New Long Range RWD Variant and $2,000 Price Drop: Insights into Elon Musk’s Business Strategy and Stock Price

Tesla has made changes to its Model Y lineup, dropping the Rear-Wheel Drive variant and introducing the Long Range RWD variant. The EV giant recently reduced the price of the Model Y RWD by $2,000 to $42,990, which was its lowest list price ever. The Long Range RWD will now start at $44,990.

The Model Y LR RWD offers a range of 320 miles, an improvement from the RWD’s 260 miles for an additional $2,000. The Model Y LR All-Wheel Drive has a range of 310 miles but offers faster acceleration, starting at $47,990. Elon Musk announced on social media that recent RWD Model Y vehicles have extra range that can be unlocked for $1,500-$2,000.

In addition to changes in pricing and model variants, Tesla also saw a jump in stock price, with shares rising 7.7% the previous week. The stock moved above the 10-week line, which had previously served as resistance in 2024. Despite the positive movement in stock price, there were concerns raised about Tesla’s strategy and long-term growth prospects after Elon Musk made changes within the company, including axing the Supercharger and new vehicles teams.

The Long Range RWD is eligible for a $7,500 IRA tax credit