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Tesla (TSLA, Financials) just added a new twist to its Model Y lineup a Long Range Rear-Wheel Drive version priced at $44,990, according to the company's website on Tuesday.
With this launch, Tesla is giving U.S. buyers a more budget-friendly option that still delivers extended driving range. It's a play for value-conscious consumers who want range without the higher price tag of dual-motor or performance models.
Tesla has made several price tweaks lately, part of its broader strategy to stay competitive as fresh pressure builds from other EV makers. Lucid (LCID, Financials) and Rivian (RIVN, Financials), for instance, are both feeling the pinch from increased costs particularly tariffs and supply issues according to Reuters.
The new Model Y was already turning heads at the Everything Electric expo in London back in March, hinting Tesla had plans to broaden the model's reach.
This release also comes as Tesla works through regulatory hurdles related to its autonomous driving systems and issues software recalls. Across the EV space, competition continues to heat up including Uber's recent move to team up with China's Pony AI on robotaxis in the Middle East.
Investors will want to watch how Tesla balances affordability with innovation, especially as it fine-tunes its pricing strategy to keep pace with a fast-evolving global EV landscape.
This article first appeared on GuruFocus.