Tesla launches cheaper Model Y in the US, but confirms it's ditched the Cybertruck's promised range extender

Tesla Model Y 2025
(Image credit: Tesla)

Tesla has just released a more affordable version of its recent refreshed Model Y in North America, which sees the All Wheel Drive Long Range variant joined by a single motor version that now costs $44,990 – $4,000 less than the faster and more powerful option.

Since going on sale in the US, Tesla only offered the refreshed Model Y in a fully-loaded Launch Edition model, which came with exclusive paint colors, a rear spoiler and an aerodynamically optimized alloy wheel finish, but it cost a staggering $60,000.

That car was then joined by a cheaper Long Range All Wheel Drive variant that started at $49,990, but many customers were crying out for an even more affordable option that might have compromised on the performance that dual motors provide, while still offering the most generous battery range... 357 miles in total.

As a reaction to a general cooling of demand for Tesla vehicles in the US and Canada – with Electrek reporting that the company hasn't been enjoying its typical backlog of orders for new Model Y since it launched – the cut-price EV has arrived at a pivotal moment.

However, the Long Range Rear Wheel Driver version has been on sale in Europe and China for a number of months, where sales have continued to plummet.

According to CNN, April sales were down 62% in the UK, 67% in Denmark and 81% in Sweden. Sales from its plant in Shanghai fell 6% from the previous year in April.

Perhaps the damage has been done and no matter how much Musk chooses to drop his prices, customers simply don't want to be seen in a Tesla.

Range rage for Cybertruck owners

Tesla Cybertruck Range Extender Battery

(Image credit: Tesla)

News also surfaced this week that Tesla has now officially given up on its plans to mass produce a range-extending battery pack that would sit in Cybertruck’s load bed (eating into space) and deliver the sort of range figures that Elon Musk promised during its launch in 2023.

Customers could put down a small deposit for the $16,000 optional extra, but Inside EVs says that these down payments are now being refunded, meaning the $100,000 tri-motor Cybertruck can only manage 320 miles in-between charging, not the 500 that was once promised.

Just last month, Tesla quietly removed the option to place a $2,000 deposit on the range extending battery pack from its website, but it has now reached out to Cybertruck customers to inform them the project is shelved.

Alas, this is just the latest in a long line of disappointment for Cybertruck owners, as alongside a massively over-egged range, it turns out that the vehicle will also not be receiving the firm’s Auto Steer technology, which autonomously detects road markings and remains in lane when cruise control is activated… similar to the Lane Departure Assist systems found on many modern vehicles.

Instead, Tesla is offering Cybertruck customers access to free Full Self-Driving (FSD) for a year, but after that, the features disappear if the customer isn’t willing to continue coughing up the $99 a month subscription fee.

Maybe Musk has been watching one too many episodes of Black Mirror, with 'Common People' clearly on repeat.

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Leon Poultney
EVs correspondent

Leon has been navigating a world where automotive and tech collide for almost 20 years, reporting on everything from in-car entertainment to robotised manufacturing plants. Currently, EVs are the focus of his attentions, but give it a few years and it will be electric vertical take-off and landing craft. Outside of work hours, he can be found tinkering with distinctly analogue motorcycles, because electric motors are no replacement for an old Honda inline four.

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