Tesla has once again taken a chainsaw to the Model Y's price tag, and the result is the most affordable version yet of America's best-selling electric crossover. The new Model Y Long Range Rear-Wheel Drive (quite a mouthful, isn't it?) starts at a relatively palatable $46,630 including destination and order fees, which is a full $4,000 less than the dual-motor all-wheel-drive variant. And if you factor in the $7,500 federal tax credit that the Model Y still qualifies for, you're looking at an effective price of just under $40,000. That's still not exactly cheap-as-chips territory, but it's getting a lot closer to the price of a well-equipped conventional crossover. For comparison, a fully-loaded Mazda CX-5 will set you back about the same amount. But before we break out the party hats and celebrate Tesla's newfound affordability, let's remember that this is the same company that's been promising a $25,000 electric car for what feels like forever. That mythical affordable Tesla has been delayed more times than a British train service during a light drizzle, with the latest reports suggesting it's been pushed back yet again. At this point, the $25,000 Tesla has joined the second-generation Roadster and the Cybertruck robotaxi in the pantheon of Elon Musk promises that exist primarily in PowerPoint presentations. What you get for your money (and what you don't) So what exactly does your $46,630 get you with this new cut-price Model Y? Actually, quite a lot. Despite being the budget option, the single-motor rear-wheel-drive Model Y still boasts an impressive EPA-estimated range of 357 miles, which is actually slightly better than the dual-motor version. It'll also hit 60 mph in a respectable 5.4 seconds and top out at 125 mph, which should be more than enough to embarrass most other crossovers at the traffic lights. The standard equipment list includes 19-inch wheels (the same ones that look like they were designed by someone who just discovered the 'rotate' tool in Microsoft Paint), the minimalist interior we've all come to know and tolerate, and Tesla's giant tablet-like infotainment system that controls literally everything in the car. If you want to jazz things up, you can upgrade to 20-inch wheels for an extra $2,000, but be warned – they'll reduce your range to a still-impressive 344 miles. For those who fancy themselves as early adopters of questionable technology, Full Self-Driving (Supervised) – which, despite its name, is neither fully self-driving nor should it ever be left unsupervised – is available for a wallet-wilting $8,000. And if you plan on towing anything, there's a tow package for an additional $1,000 that allows the Model Y to pull up to 3,500 pounds. Though given the calamitous effect towing has on electric vehicle range, you might want to keep those towing adventures short unless you enjoy spending quality time at charging stations. As for paint options, Tesla continues its tradition of charging extra for any color that isn't utterly forgettable. Stealth Gray comes standard, but if you want white or blue, that'll be an extra $1,000. Black costs $1,500, while red or silver will set you back a hefty $2,000. It's almost as if Elon has never heard of the concept of "included options." The never-ending quest for the affordable Tesla This latest price cut is part of a broader trend we've seen from Tesla over the past year or so. After years of commanding premium prices and enjoying fat profit margins, the company is finally feeling the pressure from increased competition. Chinese brands like BYD are pumping out electric vehicles at astonishing rates and prices, while traditional automakers are finally getting their electric act together. The result has been a series of price cuts across Tesla's lineup, with the Model Y seeing some of the most dramatic reductions. Remember, it wasn't that long ago that the cheapest Model Y would have cost you well over $60,000. The fact that you can now get one for under $40,000 after tax credits is genuinely significant. But Tesla still has a long way to go if it wants to truly democratize electric vehicles as Musk has so often claimed is his mission. The company's cheapest offering remains the Model 3, which starts at $44,130 and offers up to 363 miles of range. That's still significantly more expensive than many perfectly decent gasoline-powered cars. The reality is that building truly affordable electric vehicles while maintaining profitability is extraordinarily difficult. Battery costs remain stubbornly high, and the economies of scale aren't quite there yet for many manufacturers. Tesla has advantages in both areas, but even they have struggled to push prices down to the level Musk has repeatedly promised. So while this latest price cut is welcome news for those who've been eyeing a Model Y but balking at the price, it's still not the breakthrough moment for electric vehicle affordability that many have been hoping for. That moment may still come – perhaps with Tesla's next-generation platform, or perhaps from an unexpected quarter like a Chinese manufacturer entering Western markets with absurdly low prices. In the meantime, the Model Y Long Range Rear-Wheel Drive represents a step in the right direction – a premium electric crossover that's getting closer to price parity with its conventional counterparts. It's just not the giant leap that Tesla has been promising for years. And on that bombshell, it's time to end. The Tesla Model Y: now slightly more affordable, but still not as affordable as promised.
