Tesla Launches $41,990 AWD Model Y as Focus Shifts from Legacy Sedans

Austin, Tuesday, 3 February 2026.
On February 2, 2026, Tesla expanded its U.S. offerings with a new All-Wheel Drive Model Y priced at $41,990, aiming to capture cost-conscious buyers in a post-subsidy market. While the aggressive pricing addresses cooling EV demand and rising competition, the move serves as a prelude to a radical structural pivot. In a definitive break from its origins, Tesla is discontinuing the flagship Model S and Model X lines at its Fremont facility. This capacity will be reallocated to the production of Optimus humanoid robots and Cybercabs, marking a historic transition from luxury automotive manufacturing toward a future centered on mass-market volume and autonomous robotics.