The 2021 Tesla Model Y Just Got A Major Price Cut

The Ford Mustang Mach-E better watch out! The 2021 Tesla Model Y just got an $8,000 price drop to be more competitive. Will the Mach-E respond to the Telsa Model Y’s lower base model price as their EV battle continues? 

The new 2021 Tesla Model Y variant saves $8,000 

According to AutoBlog, Tesla just revealed a lower-priced version of the Model Y, making it the cheapest electric vehicle that Tesla has to offer. The new base 2021 Tesla Model Y trim has an MSRP of $43,190, including the destination fee. 

The Tesla Model Y is the brand's first small electric crossover.
Tesla Model Y | Hannes Breustedt/picture alliance via Getty Images

The base model of the Mustang Mach-E has an MSRP of about $42,895, without the destination fee included. So, even without knowing the destination fee, we know that these prices are much more competitively matched than before. However, with the Mustang Mach-E, you may still qualify for a federal tax credit, generating more savings. 

The Tesla Model Y vs. the Mustang Mach-E 

The new Standard Range Tesla Model Y has an EPA estimated range of 244 miles. The Performance trim offers a 303-mile range, and the Long Range model provides up to 326 miles of range. So, you may have to charge the Standard Range model a little more often. 

With the Standard Range Model Y, you get a single motor and rear-wheel drive. The Long Range Model Y increases the price by about $8,000 but comes with a dual-motor and all-wheel-drive. The Performance Model, which is the top-spec trim, begins around $61,190 with the destination fee included. 

RELATED: What Is It Like to Drive the Tesla Model Y

The Ford Mustang Mach-E base model with rear-wheel-drive is the cheapest variant. It has a 76.8-kWh Standard Range battery and gets about 230 miles of range. You can AWD for about $2,700.

 With the Mach-E Premium trim, you can choose between the Standard Range or Extended range battery pack. The Extend Range pack provides up to 300 miles of range.

The Machtang Mach-E GT comes with 250 miles of range but offers the ability to accelerate from 0 to 60 in under four seconds. This option begins around $60,500. 

The Standard Range Tesla Model Y can reach 60 mph in 4.8 seconds, while the Performance and Long Range trims can accelerate from 0 to 60 mp in about 3.5 seconds. We will see if the GT can beat it. 

Tesla Model Y features 

In other 2021 Tesla Model Y news, you can now equip it with a third-row seat. The Model Y offers up to 68 cubic feet of cargo space, while the Mustang Mach-E only offers up to 59.7 cubic feet. 

2021 Tesla Model Y driving
2021 Tesla Model Y | Tesla

The third row of the Model Y is probably meant for children that can squeeze back there, and there is no space for a third-row in the Mach-E. The three-row Tesla Model Y can seat seven passengers, and the third row costs about $3,000 to add. 

The third row includes seating for two, easy entry, a USB-C charging port for the kids to use, electronic fold-flat releases in the trunk, fold-flat seats to maximize cargo space, and a sliding second-row with adjustable seatbacks.