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Here’s everything to know about the Tesla Model Y before buying.

June 21, 2025
in News
Here’s everything to know about the Tesla Model Y before buying.
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The Tesla Model Y is the world’s most popular electric vehicle.

Tesla Hong Kong

The Model Y is the reigning champ as the world’s best-selling vehicle, and Tesla redesigned and launched the new Model Y in 2025.

The Tesla Model Y once beat out beloved, gas-powered rides like the Toyota RAV4 and Honda Accord to become the world’s most popular model — period — in all of 2023, according to data compiled by market research firm JATO Dynamics. But amid slumping Tesla sales throughout 2025, brought on by the rise of competitors and backlash against the CEO, it remains to be seen whether the vehicle’s immense popularity will continue.

Here’s what to know if you’re in the market for a Model Y. 

How much does a Tesla Model Y cost?

A red Tesla Model Y is on display in a showroom.
The Tesla Model Y’s price varies by driving range and performance.

Artur Widak/NurPhoto via Getty Images

The Model Y is the second-cheapest of the Tesla models, with varied options such as driving range and performance.

A rear-wheel Long Range Model Y costs $46,630, and the all-wheel drive Model Y Long Range, which will run you $50,630 and up. The Model Y Performance still has yet to be launched.

Tesla frequently changes its vehicle prices, however, and implemented both hikes and cuts in 2024. CEO Elon Musk has said it’s done to match production with demand.

What features are new about the Model Y?

The interior of a Tesla Model Y.
The new Tesla Model Y has ventilated front seats and the interior is almost entirely button-free.

Artur Widak/NurPhoto via Getty Images

The updated Model Y has redesigned tail lights and headlights, including a light bar the spans the front of the vehicle. The body has been slightly tweaked for enhanced aerodynamics, and there is now a spoiler at the rear.

And the front seats are now ventilated and an eight-inch rear screen has been added as well.

Overall, the latest Model Y also has the typically uncluttered Tesla interior, which is practically button-free. Almost all vehicle settings are accessed through the SUV’s iPad-like touchscreen, or through voice commands.

The crisp display shows the vehicle’s speed, a real-time map, infotainment information, and it provides access to all the high-tech Tesla features the company is famous for, like Dog Mode (which keeps the cabin cool for furry friends), a web browser, and a built-in navigation system that makes it easy to find Tesla’s Supercharger stations.

Does Tesla’s Model Y qualify for the new EV tax credit?

A gray Tesla Model Y SUV is shown driving down the highway from a rear view with trees in the background.
The Model Y is eligible for the new federal EV tax credit.

Tesla

Yes. Buyers can get a $7,500 tax credit on Model Y purchases if they don’t exceed income caps of $150,000 per year for individuals, $225,000 for heads of households, or $300,000 for married couples.

Does Tesla sell a bigger SUV?

The Tesla Model X SUV is quite a bit larger and more expensive. It’s closer to the top of Tesla’s price range, with a starting price tag of $77,990. It’s available with five, six, or seven seats. 

It has slightly more range than the Model Y, sporting an EPA estimate of 348 miles. It’s also the only SUV you can buy with wacky, falcon-wing doors that swing upward, making the Model X look like some kind of four-wheeled spaceship. 

Tim Levin contributed to an earlier version of this story.

The post Here’s everything to know about the Tesla Model Y before buying. appeared first on Business Insider.

Tags: advertisementBusiness Insidermarketmilemodel ymodel y long rangePerformancepopularitypriceRangestoryTeslatesla model yvehicleWorld
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