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Tesla Model Y RWD Reenters US Market LFP Battery Updated Price

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【Summary】Tesla has reintroduced the Model Y RWD in the US market with a LFP battery and a lower price. The new model is similar to the one sold in Europe and China and is likely built at Giga Texas. The decision to retire the Model Y AWD was influenced by the need for 4680 cells for Cybertruck production. The Model Y RWD with LFP cells offers better charging performance and a lower price compared to the discontinued AWD model. It has a range of 260 miles and a slower acceleration time.

FutureCar Staff    Oct 03, 2023 4:16 PM PT
Tesla Model Y RWD Reenters US Market LFP Battery Updated Price

Tesla has introduced a new base-version Model Y RWD in the US, replacing the standard-range AWD model that was retired last month. The specifications of the new Model Y RWD are similar to the ones sold in Europe and China, suggesting that it is most likely built at Giga Texas.

Tesla recently made the decision to retire the Model Y AWD built at Giga Texas, which featured a structural battery pack and 4680 cells. The reason behind this decision was not specified, but there were speculations that it may be related to the upcoming production start of the Cybertruck. The Cybertruck requires a large number of 4680 cells, and Tesla's production yields are not high enough to support building two models with these cells. However, it is important to note that the Cybertruck uses the second generation of 4680 cells, known as "Cybercells." Despite this, the production of the Model Y at Giga Texas was still affected.

As the battery line at Giga Texas ramped up production, Tesla was confident enough to revamp the Kato Road experimental production line. Additionally, the 4680 battery line near Fremont will soon start producing the second-generation 4680 cells. As a result, production will be halted for three months starting in November.

When Tesla stopped offering the 4680-cell Model Y in the US, it was expected that the next base Model Y would be a more affordable model built with LFP cells, similar to the one from Giga Berlin. Less than two weeks later, Tesla launched the Model Y RWD in the US, which aligns with those expectations. The specifications published by Tesla indicate that this model is very similar to the Model Y RWD produced in Germany.

It makes sense for the Model Y RWD produced in the US to be similar to the one produced in Germany, as both Giga Texas and Giga Berlin have the capability to produce the Model Y with front and rear single-piece megacastings and a structural battery pack. Giga Berlin is the only Tesla factory, apart from Giga Texas, that has a similar product. The Model Y RWD produced in Germany uses a structural battery pack supplied by BYD, which features LFP chemistry and is considered one of the most advanced in the world.

Tests conducted on the Model Y RWD with the BYD battery pack have shown outstanding charging performance. The BYD pack outperformed the 4680-cell battery pack used in the Model Y AWD built at Giga Texas. It not only charges faster but also has the ability to be charged to 100% regularly, unlocking more range. Although the maximum capacity of the LFP pack is likely lower than the 4680 pack, it offers advantages in terms of charging capabilities.

The new Model Y RWD launched in the US has a retail price of $43,990, which is $3,750 less than the discontinued Model Y AWD. It also qualifies for the full $7,500 tax credit. This suggests that Tesla is either manufacturing the battery pack in North America or utilizing the same strategy used for the Model 3 RWD, which involved importing an LFP pack from China. The Model Y RWD has a range of 260 miles (418 km), which is 19 miles (31 km) less than the discontinued AWD model. It also has a slightly slower acceleration, with a 0-60 mph (97 kph) time of 6.6 seconds compared to 5.0 seconds.

This is not the first time Tesla is offering a Model Y RWD in the US. In January 2021, Tesla launched a Model Y RWD with a range of 244 miles for $41,990. However, when adjusted for inflation, the price of the 2021 Model Y RWD would be $49,285 in today's money.

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