When Tesla unveiled its new, lower-cost Model Y, I didn't pay it much attention. De-contented models are generally not my bag. I’d sooner buy a less expensive model and get a well-equipped trim of that less expensive vehicle. That said, one of the biggest reasons not to buy a Tesla Model Y was fixed by Tesla’s penny pinching. It’s low-profile tires on oversized rims. In the new base trim, Tesla fixes this problem that many reviewers and owners identified years ago.
Tesla’s Name & Price For the Budget Model Y
The name of the lower-cost Model Y has now evolved from “Standard” to Model Y Rear-Wheel Drive (RWD). It’s priced at $41,630, including the (well-hidden) Tesla Order Fee and Tesla’s Destination Fee. By contrast, an AWD Premium Model Y has a price of $50,630. That’s a giant leap in cost.
A Tesla Shopper Points Out the Differences
There are many differences between the Model Y RWD and the Premium version of the vehicle. They have a different design for the rear hatch and bumper area. Up front, the RWD does not have the full-width light bar at the intersection of the hood and bumper. It’s just plain. If you view the Tesla website, you may not notice this omission because Tesla hides it by using a white RWD in its images. It’s almost like Tesla doesn’t want you to know.
The RWD base model also lacks heated rear seats, has no ventilated seats, has a lower-quality audio system, and is slower.
One Tesla shopper we communicated with visited his local retail location and noticed another very large difference when he opened up both hoods. As our image shows, the Premium is a lot more “finished” under the hood. It has a big gasket to make the frunk waterproof. The RWD, by contrast, has a frunk that appears less well protected under the hood.
Richard Lew posted in a Tesla Model Y group on Facebook:
One thing I found that was very disturbing was the frunk. The premium version frunk is sealed from the elements with rubber seals and an insert under the hood. The cheaper version has no seal at all, so if you’re driving through heavy rains or dusty roads, the cargo will get dirty as well.
We have to agree with Richard that the appearance is just as he described. Another member of the same Tesla group agreed, and said, “It looks not finished.” We should note that more than one 2026 Tesla Model Y RWD owner said that the Model Y they themselves owned DID have the more finished frunk area. To verify that the base RWD does, in fact, have the “unfinished looking” frunk, we turned to YouTube and found videos showing it just as the white Model Y on the left of our pair of images appears.
The Tesla Model Y RWD De-contenting Move We Support and Like
One move that Tesla made with the base model Model Y RWD that makes me happy is the smaller 18” wheel diameter and slightly taller sidewall. Here in New England, our roads are destroyed each winter, and then potholes linger through the summer. Unfortunately, fixing roads does not buy votes, so our local towns let the holes go unfilled. A taller sidewall and smaller diameter tire offer more flexibility and resistance to road damage. We lost a new low-profile Michelin Pilot Sport tire this very month to a monstah pothole in downtown Boston on our Toyota GR86 sports car. A moment of silence, please.
When I first drove the Model Y back to back with another competitor, the biggest negative contrast for me was the harsh ride of the Model Y. I’d take the smaller wheel and taller sidewall and be psyched to get it.
What’s your take on the budget Model Y? Do you think the sacrifices made justify the lower cost point, and do you agree with me that a taller sidewall is a benefit? Tell us in the comments below.
Top of page image courtesy of Richard Lew. Tire image courtesy of Tesla, Inc.
John Goreham is a 14-year veteran of Torque News. An accomplished writer and a long-time expert in vehicle testing, Goreham also serves as the Vice President of the New England Motor Press Association and has a growing social media presence. He’s also a 10-year staff writer and community moderator for Car Talk. Goreham holds a B.S. in Mechanical Engineering and an undergraduate Certificate in Marketing. In addition to vehicle and tire content, he offers deep dives into market trends and opinion pieces. You can follow John Goreham on X and TikTok, and connect with him on LinkedIn.
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