Tesla has evidently landed an EPA approval for a new variant of the Model Y all-electric crossover. A new 279-mile version of Tesla’s most popular vehicle appeared on the EPA’s Fuel Economy website last evening, confirming the vehicle has been tested by the agency.
Teslarati recently reported that Tesla was awaiting EPA approval of the Austin-built Model Y, based on a company statement in the Q4 2021 Shareholder Deck. We reported that Tesla had received approval for previous Model Y variants, but not the new configuration that was set to be built at Gigafactory Texas. This model would equip not only Tesla’s new 4680 battery cells but also the structural battery pack. However, the new Model Y variant, according to FuelEconomy.gov, only equips 279 miles of range, which seems to indicate that this is not the 4680-equipped Model Y that Tesla would be delivering to customers initially. InsideEVs initially reported on the appearance of the new Model Y variant on the Fuel Economy website.
In January, Tesla announced that it had produced its millionth 4680 battery cell at the Kato Road facility in Northern California. While this is an accomplishment Tesla was obviously proud of, it wasn’t necessarily confirmation that the 4680 cells were ready to be equipped in a massive number of Model Y vehicles. 1 million 4680 cells would produce around 1,200 Model Y vehicles, according to Industry researcher Benchmark Mineral Intelligence.
The 279-mile rated Model Y that appeared on FuelEconomy.gov could be an LFP (lithium-iron-phosphate) cell, which Tesla and other automakers have started to use for its Standard Range vehicles.
Tesla applied for and received approval for new Model Y in February
The EPA received an application from Tesla on February 2, according to agency filings. The EPA then granted a Certificate of Conformity for this application on February 16, which could be an indication that Tesla has received approval to begin delivering this new, mysterious 279-mile Model Y variant.
Interestingly, Tesla has also applied for another EPA certification of a Model Y variant. The application was submitted on February 23, but has not received a Certificate of Conformity, which would allow the car to enter the stream of commerce, from the EPA as of March 13.
As of now, Tesla does not have a 279-mile variant of the Model Y listed on its design studio. Only the Long Range All-Wheel-Drive and Performance variants are available to order. However, it could begin to offer the variant in the coming days, especially if the company plans to roll out a new Standard Range configuration that could equip LFP cells. Tesla made this move with the Model 3 in August 2021. As Tesla was battling high order volume for the Model 3, the company communicated to customers awaiting delivery that they could switch to a different pack it uses in Europe and Asia. This is the LFP pack has been available in Shanghai-built Model 3s since 2020. Because of its sensitivity in cold weather and other situations, the pack offers lower range ratings. The LFP Model 3 only has 253 miles of range.
CEO Elon Musk explained the advantages of the LFP pack last year. “Our intent with this pack is that product experience is roughly equivalent between nickel & iron,” the CEO said. “I’d personally slightly opt for iron pack, as it wants to be charged to 100%, whereas nickel prefers ~90%.”
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Tesla launches in India with Model Y, showing pricing will be biggest challenge
Tesla finally got its Model Y launched in India, but it will surely come at a price for consumers.
Tesla has officially launched in India following years of delays, as it brought its Model Y to the market for the first time on Tuesday.
However, the launch showed that pricing is going to be its biggest challenge. The all-electric Model Y is priced significantly higher than in other major markets in which Tesla operates.
On Tuesday, Tesla’s Model Y went up for sale for 59,89,000 rupees for the Rear-Wheel Drive configuration, while the Long Range Rear-Wheel Drive was priced at 67,89,000.
This equates to $69,686 for the RWD and $78,994 for the Long Range RWD, a substantial markup compared to what these cars sell for in the United States.
🚨 Here’s the difference in price for the Tesla Model Y in the U.S. compared to India.
🚨 59,89,000 is $69,686
🚨 67,89,000 is $78,994 pic.twitter.com/7EUzyWLcED— TESLARATI (@Teslarati) July 15, 2025
Deliveries are currently scheduled for the third quarter, and it will be interesting to see how many units they can sell in the market at this price point.
The price includes tariffs and additional fees that are applied by the Indian government, which has aimed to work with foreign automakers to come to terms on lower duties that increase vehicle cost.
Tesla Model Y seen testing under wraps in India ahead of launch
There is a chance that these duties will be removed, which would create a more stable and affordable pricing model for Tesla in the future. President Trump and Indian Prime Minister Narendra Modi continue to iron out those details.
Maharashtra Chief Minister Devendra Fadnavis said to reporters outside the company’s new outlet in the region (via Reuters):
“In the future, we wish to see R&D and manufacturing done in India, and I am sure at an appropriate stage, Tesla will think about it.”
It appears to be eerily similar to the same “game of chicken” Tesla played with Indian government officials for the past few years. Tesla has always wanted to enter India, but was unable to do so due to these import duties.
India wanted Tesla to commit to building a Gigafactory in the country, but Tesla wanted to test demand first.
It seems this could be that demand test, and the duties are going to have a significant impact on what demand will actually be.
Elon Musk
Tesla ups Robotaxi fare price to another comical figure with service area expansion
Tesla upped its fare price for a Robotaxi ride from $4.20 to, you guessed it, $6.90.
Tesla has upped its fare price for the Robotaxi platform in Austin for the first time since its launch on June 22. The increase came on the same day that Tesla expanded its Service Area for the Robotaxi ride-hailing service, offering rides to a broader portion of the city.
The price is up from $4.20, a figure that many Tesla fans will find amusing, considering CEO Elon Musk has used that number, as well as ’69,’ as a light-hearted attempt at comedy over the past several years.
Musk confirmed yesterday that Tesla would up the price per ride from that $4.20 point to $6.90. Are we really surprised that is what the company decided on, as the expansion of the Service Area also took effect on Monday?
But the price is now a princely $6.90, as foretold in the prophecy 😂
— Elon Musk (@elonmusk) July 14, 2025
The Service Area expansion was also somewhat of a joke too, especially considering the shape of the new region where the driverless service can travel.
I wrote yesterday about how it might be funny, but in reality, it is more of a message to competitors that Tesla can expand in Austin wherever it wants at any time.
Tesla’s Robotaxi expansion wasn’t a joke, it was a warning to competitors
It was only a matter of time before the Robotaxi platform would subject riders to a higher, flat fee for a ride. This is primarily due to two reasons: the size of the access program is increasing, and, more importantly, the service area is expanding in size.
Tesla has already surpassed Waymo in Austin in terms of its service area, which is roughly five square miles larger. Waymo launched driverless rides to the public back in March, while Tesla’s just became available to a small group in June. Tesla has already expanded it, allowing new members to hail a ride from a driverless Model Y nearly every day.
The Robotaxi app is also becoming more robust as Tesla is adding new features with updates. It has already been updated on two occasions, with the most recent improvements being rolled out yesterday.
Tesla updates Robotaxi app with several big changes, including wider service area
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Tesla Model Y and Model 3 dominate U.S. EV sales despite headwinds
Tesla’s two mainstream vehicles accounted for more than 40% of all EVs sold in the United States in Q2 2025.
Tesla’s Model Y and Model 3 remained the top-selling electric vehicles in the U.S. during Q2 2025, even as the broader EV market dipped 6.3% year-over-year.
The Model Y logged 86,120 units sold, followed by the Model 3 at 48,803. This means that Tesla’s two mainstream vehicles accounted for 43% of all EVs sold in the United States during the second quarter, as per data from Cox Automotive.
Tesla leads amid tax credit uncertainty and a tough first half
Tesla’s performance in Q2 is notable given a series of hurdles earlier in the year. The company temporarily paused Model Y deliveries in Q1 as it transitioned to the production of the new Model Y, and its retail presence was hit by protests and vandalism tied to political backlash against CEO Elon Musk. The fallout carried into Q2, yet Tesla’s two mass-market vehicles still outsold the next eight EVs combined.
Q2 marked just the third-ever YoY decline in quarterly EV sales, totaling 310,839 units. Electric vehicle sales, however, were still up 4.9% from Q1 and reached a record 607,089 units in the first half of 2025. Analysts also expect a surge in Q3 as buyers rush to qualify for federal EV tax credits before they expire on October 1, Cox Automotive noted in a post.
Legacy rivals gain ground, but Tesla holds its commanding lead
General Motors more than doubled its EV volume in the first half of 2025, selling over 78,000 units and boosting its EV market share to 12.9%. Chevrolet became the second-best-selling EV brand, pushing GM past Ford and Hyundai. Tesla, however, still retained a commanding 44.7% electric vehicle market share despite a 12% drop in in Q2 revenue, following a decline of almost 9% in Q1.
Incentives reached record highs in Q2, averaging 14.8% of transaction prices, roughly $8,500 per vehicle. As government support winds down, the used EV market is also gaining momentum, with over 100,000 used EVs sold in Q2.
Q2 2025 Kelley Blue Book EV Sales Report by Simon Alvarez on Scribd
Tesla launches in India with Model Y, showing pricing will be biggest challenge
Tesla ups Robotaxi fare price to another comical figure with service area expansion
Tesla Model Y and Model 3 dominate U.S. EV sales despite headwinds
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