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Tesla Model Y now available for $499 per month through new leasing program

(Credit: Tesla)

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The Tesla Model Y is the electric car maker’s more affordable crossover, but it is still a premium priced vehicle that costs $49,990 cash or about $699 per month on a standard 72 month loan. Just recently, however, Tesla has opened leasing options for the Model Y, which allows customers to lease the vehicle for 36 months at an affordable price of $499 per month.

The Model Y Dual Motor AWD is quite a lot of car for $499 per month. It’s a pretty large and competent vehicle on its own right, with its cargo space of 68 cu ft and its range of 316 EPA miles per charge. In true Tesla form, the Model Y Dual Motor AWD is no slouch either, with its 0-60 mph time listed at 4.8 seconds and its top speed rated at 135 mph. That’s well within muscle car territory.

The Tesla Model Y is expected to be the best selling vehicle in the company’s lineup due to its crossover nature. Crossovers, after all, are a particularly popular segment, and it is not showing any sign of decline. With this in mind, the Model Y, which slots right in with other popular crossovers in the market like the BMW X3, could become an ideal first EV for customers, especially those with families but are also particular with performance.

What is rather interesting is that the Model Y lineup today is only comprised of the vehicle’s two more expensive trims. So far, Tesla is only offering the Model Y as a Dual Motor AWD vehicle. Plans are still underway to release the all electric crossover as a Rear Wheel Drive unit, with CEO Elon Musk recently stating that Tesla will be introducing a Long Range RWD variant with well over 300 miles of range. The RWD Model Y will likely be even more affordable than the Dual Motor AWD option.

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Similar to the Model 3, it appears that the Model Y leasing program does not allow customers to purchase the Model Y at the end of the 36 month term. This could be quite inconvenient for some customers, seeing as Teslas actually retain their value in the second hand market very well. That being said, Tesla has noted when it launched the Model 3 leasing program that the vehicles coming off the 36 month lease period are intended to be used for the company’s upcoming Robotaxi fleet.

Using off lease vehicles for its Robotaxi Network is actually a pretty good strategy for the electric car maker, considering that the company would need a fleet of vehicles if it wants to launch a ride hailing service that could be competitive with mainstays such as Uber and Lyft. Of course, Tesla would have to master its Full Self Driving suite before it could launch such a service, but the company seems to be optimistic about these prospects as well. Elon Musk, for one, has noted that he is quite optimistic about Tesla’s Autopilot rewrite, which should accelerate the improvement of the company’s driver assist features.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Texas township wants The Boring Company to build it a Loop system

The township’s board unanimously approved an application to The Boring Company’s “Tunnel Vision Challenge.”

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Credit: The Boring Company

The Woodlands Township, Texas, has formally entered The Boring Company’s tunneling sweepstakes. 

The township’s board unanimously approved an application to The Boring Company’s “Tunnel Vision Challenge,” which offers up to one mile of tunnel construction at no cost to a selected community.

The Woodlands’ proposal, dubbed “The Current,” features two parallel 12-foot-diameter tunnels beneath the Town Center corridor near The Waterway. Teslas would shuttle passengers between Waterway Square, Cynthia Woods Mitchell Pavilion, Town Green Park and nearby hotels during concerts and large-scale events, as noted in a Chron report.

Township officials framed the tunnel as a solution for the township’s traffic congestion issues. The Pavilion alone hosts more than 60 shows each year and can accommodate crowds of up to 16,500, often straining Lake Robbins Drive and surrounding intersections.

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“We know we have traffic impacts and pedestrian movement challenges, especially in the Town Center area,” Chris Nunes, chief operating officer of The Woodlands Township, stated during the meeting.

“The Current” mirrors the Loop system operating beneath the Las Vegas Convention Center, where Tesla vehicles transport passengers through underground tunnels between venues and resorts.

The Boring Company issued its request for proposals (RFP) in mid-January, inviting cities and districts to pitch local uses for its tunneling technology. The Woodlands must submit its application by Feb. 23, though no timeline has been provided for when a winning community will be announced.

Nunes confirmed that the board has authorized a submission for “The Current’s” proposal, though he emphasized that the project is still in its preliminary stages.

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“The Woodlands Township Board of Directors has authorized staff to submit an application to The Boring Company, which has issued an RFP for communities interested in leveraging their technology to address community challenges,” he said in a statement. 

“The Board believes that an underground tunnel would provide a safe and efficient means to transport people to and from various high-use community amenities in our Town Center.”

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Tesla Model Y wins 2026 Drive Car of the Year award in Australia

The Model Y is already Australia’s best-selling EV in 2025 and the tenth best-selling vehicle overall.

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Credit: Tesla

The Tesla Model Y has been named 2026 Drive Car of the Year overall winner, taking the top honor after being judged as the vehicle that “moves the game forward the most for Australian new car buyers.” 

The Model Y is already Australia’s best-selling EV in 2025 and the tenth best-selling vehicle overall, but the vehicle’s Juniper update strengthened its case with new ownership benefits and expanded software capability.

Drive’s overall award compares category winners and looks at which model most significantly advances the local new car market. In 2026, judges pointed to the Model Y’s five-year warranty and the availability of Full Self-Driving (Supervised) as a monthly subscription as key differentiators.

Priced from AU$58,900 before on-road costs, the all-electric crossover SUV offers a lot of value compared to similarly sized petrol and hybrid rivals. The ability to access Tesla’s Supercharger network across Australia also reduces friction for buyers moving to EV ownership.

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Owners can add FSD (Supervised) for AU$149 per month. While it still requires driver oversight, the system expands the vehicle’s advanced driver-assistance capabilities and reflects Tesla’s software-first approach.

“The default choice for a reason. The Tesla Model Y makes the transition to electric both effortless and rewarding,” Drive wrote.

The 2025 Model Y facelift also sharpened the vehicle’s exterior, highlighted by a distinctive rear light bar that gives the crossover SUV a more modern road presence.

Drive described the Model Y as a benchmark for combining practicality, efficiency and technology at an accessible price point. With eligibility for federal Fringe Benefit Tax exemptions through novated leasing, its value proposition has improved for numerous buyers.

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For 2026, the Model Y’s combination of range efficiency, charging access and software capability proved decisive. Ultimately, the award all but cements the Model Y’s position as one of the most influential vehicles in Australia’s evolving new-car market today.

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Elon Musk reiterates rapid Starship V3 timeline with next launch in sight

Musk shared the update in a brief post on X, writing, “Starship flies again next month.”

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Credit: SpaceX/X

Elon Musk has confirmed that Starship will fly again next month, reiterating SpaceX’s aggressive timeline for the first launch of its Starship V3 rocket.

Musk shared the update in a brief post on X, writing, “Starship flies again next month.” The CEO’s post was accompanied by a video of Starship’s Super Heavy booster being successfully caught by a launch tower in Starbase, Texas. 

The timeline is notable. In late January, Musk stated that Starship’s next flight, Flight 12, was expected in about six weeks. This placed the expected mission date sometime in March. That estimate aligned with SpaceX’s earlier statement that Starship’s 12th flight test “remains targeted for the first quarter of 2026.”

If the vehicle does indeed fly next month, it would mark the debut of Starship V3, the upgraded platform expected to feature the rocket’s new Raptor V3 engines.

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Raptor V3 is designed to deliver significantly higher thrust than earlier versions while reducing cost and weight. Starship V3 itself is expected to be optimized for manufacturability, a critical step if SpaceX intends to scale production toward frequent launches for Starlink, lunar missions, and eventually Mars.

Starship V3 is widely viewed as the version that transitions the program from experimental testing to true operational scaling. Previous iterations have completed multiple integrated flight tests, with mixed outcomes but steady progress. Expectations are high that SpaceX is now working on Starship’s refinement.

An aggressive launch schedule supports several priorities at once. It advances Starlink’s next-generation satellite deployment, supports NASA’s lunar ambitions under Artemis, and keeps SpaceX on track for its longer-term Moon and Mars objectives.

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