Tesla (TSLA) unveiled the new Model Y Performance, a high-end variant of the EV maker’s volume crossover SUV. Though it’s only available in Europe — where Tesla sales have cratered recently — it will be coming elsewhere soon.
The Model Y was updated just a year ago with a slew of updates, but the Performance trim adds a bunch more. In addition to exterior updates like a new front and rear end, new wheels and tires, and carbon fiber aero bits, the biggest updates come under the skin.
New motors and higher-density batteries give the new Model Y extra grunt, allowing the car to go from zero to 60 mph in less than 3.5 seconds. Adaptive suspension gives the car better handling and a firmer ride, with new drive modes tied to those settings meant for aggressive driving. Inside the cabin are new sport seats, improved sound damping, and a new 16-inch touchscreen.
The updates and performance enhancements don’t come cheap, however. In Europe, the Model Y Performance will cost around 62,990 euros ($73,690), whereas the cheapest Model Y (base rear-wheel drive) comes in at 45,990 euros ($53,800). Tesla reports the Model Y performance range is around 360 miles, but this is using Europe’s generous WLTP cycle for measurement.
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The Performance variant of the Model Y will most likely be coming to the US, and prices will likely be lower. The previous-generation Model Y Performance started around $52,000, so figure a starting price a little higher than that.
Tesla’s Performance variants are typically lower-volume vehicles that, in this case, compete with EVs like the BMW iX, Audi Q4 e-tron, and Cadillac Lyriq, to name a few. Even Ford’s sporty Mustang Mach-e GT and Hyundai’s IONIQ 5 N are targets of the Model Y Performance.
A better and sportier Model Y may be what’s needed to push Tesla sales in both Europe and the US after Tesla’s issues with competition and brand perception caused by CEO Elon Musk’s role in the Trump administration. In addition, enhanced features that appear on top trim levels have a way of trickling down to lower trim vehicles as a way to boost future sales.
In the past, Tesla has tweaked and introduced different variants of its bestselling Model Y, from entry-level base trims with single motors to all-wheel-drive variants with larger batteries (and smaller ones), and now the Performance variant.
In China, for example, the company just released its Model YL, a larger version with seating for six. In the US, Musk has said a cheaper version of the Model Y is coming, likely with a similar form factor but reduced features, soon after the expiration of the $7,500 federal tax credit.
Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram.
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