Thu May 08 09:20:00 UTC 2025: ## Tesla Unveils Cheaper Model Y, Despite Recent Sales Dip

**DETROIT, MI** – Tesla launched a more affordable version of its popular Model Y SUV on Tuesday, priced at $44,990 before a potential $7,500 federal tax credit. This brings the effective price down to $37,490, making the electric vehicle more accessible to a wider range of consumers.

The new long-range, rear-wheel-drive Model Y had been anticipated but faced production delays. The all-wheel-drive version remains unchanged at $48,990.

This launch comes on the heels of a challenging quarter for Tesla. The company reported a 13% drop in sales, its lowest in nearly three years, attributed to factors including negative reactions to CEO Elon Musk’s public statements and increasing competition in the electric vehicle market. Tesla is expected to release its second-quarter earnings report in July.

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