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Tesla Launches Higher-Priced Model Y Variant in U.S., Canada, and Europe

San Francisco, January 24, 2025 – The Europe Today: Tesla Inc. (TSLA) unveiled a new, higher-priced long-range all-wheel-drive version of its best-selling Model Y on Thursday, expanding its lineup in the United States, Canada, and Europe following the variant’s initial release in China.

Priced at $59,990 in the U.S., the new Model Y costs 25% more than the base version, which is listed at $47,990, according to Tesla’s U.S. website. This makes it the most expensive Model Y variant, surpassing even the performance version.

The new variant includes Tesla’s supervised full self-driving (FSD) software as standard—a feature that was previously an $8,000 optional upgrade in earlier models. Deliveries for the vehicle are expected to begin in March 2025.

In addition to its advanced FSD capabilities, the new Model Y boasts a slightly extended range of 320 miles (515 kilometers), along with redesigned exteriors and upgraded interior features, Tesla noted.

The launch expands Tesla’s Model Y offerings in the U.S. to four variants, reaffirming the company’s focus on enhancing its flagship electric SUV.

First introduced in 2020, the Model Y became the world’s best-selling car in 2023. However, it faced increased competition from Chinese electric vehicle manufacturers and waning demand for EVs in some global markets last year. With this new variant, Tesla aims to reinvigorate sales momentum while maintaining its competitive edge in the EV market.