Tesla Introduces Lower-Price Model Y

The auto costs only $4,000 more than Tesla's least expensive offering, the Standard Range Plus Model 3.

The Tesla Model 3 eclipsed the bestselling petrol and diesel cars in the United Kingdom over the month of December, and it's no wonder that Elon Musk is happy.

As of writing the 7 seat version is only available with the newly launched Standard Range RWD and the Dual Motor all-wheel-drive versions of the Model Y.

With the Model S having a range of over 400 miles and the Model 3 and X being comfortably in the 300s I guess Tesla didn't want to release a vehicle with a range so below their average.

Tesla, in an update to the company's online configurator, has released Standard Range rear-wheel drive and seven-seat versions of the Model Y. The rear-wheel-drive version starts at $41,990.

For the year, Tesla delivered 4,42,511 Model 3 and Model Y cars, while producing 4,54,932 of the vehicles. However, this is still an affordable vehicle at $42,000 which can further reduce to $34,190 (Tesla estimate) after-tax reductions. Automotive teardown expert Sandy Munro speculated that rear-facing third-row seats would be a potential option. Adding the third row does not change the estimated delivery timeline. This could well happen with the Model Y to get it across the 250-mile mark. Both premium models have all-wheel drive, unlike the standard limited-range vehicle.

As noted by the electric auto maker, the Model Y's seven-seat interior includes the following: third row seating for two, easy entry into the third row, third row USB-C charging, sliding second row with adjustable seatbacks, fold-flat second and third rows for maximum cargo storage, and electronic fold-flat releases in the trunk. The third row is an additional $3,000 and increases seating capacity from five to seven. Tesla is yet to release any photos of the seven-seat options, but it likely that little trunk space will remain with the third row in place.