In the US, Tesla has begun accepting orders for its less expensive rear-wheel drive Model Y. The $45,990 car is the second-cheapest EV in the company’s portfolio after the RWD Model 3, costing $37,490 after federal tax subsidies (assuming they remain in effect).

The new model has a range of 357 miles, which is 30 miles longer than the all-wheel drive Model Y. According to Tesla, deliveries to the US will begin in the coming weeks. It accelerates from zero to sixty miles per hour in 5.4 seconds, which is a little slower than its AWD counterpart’s 4.6 seconds, and it has a single motor on the rear axle.

To increase sales, Tesla needs more affordable EVs. Tesla posted its lowest sales in three years as demonstrations against Elon Musk, the company’s CEO, grew and targeted Tesla dealerships. Although the less expensive Model Ys haven’t had that impact in Europe since their February launch, it would be ideal for Tesla if this cheaper EV turned around its fortunes. Even in the more Tesla-friendly UK, where the company’s April sales fell by 62 percent, CNN reports that sales are still declining there.

Deliveries in China have decreased by 26% from March, which the South China Morning Post explains to an appreciation for “cheaper, tech-laden” indigenous models made in China. Not good news.

This debut comes after Tesla’s long-range RWD Model Y was unveiled in Europe earlier this year. Tesla thinks that American consumers will react more favorably to the new offering, even though the European market has had difficulty turning around declining sales. Additionally, the company is getting ready for the 2026 launch of the Cybercab, a two-door Robotaxi.

All things considered, Tesla’s move to broaden its market reach and meet the rising demand for reasonably priced electric vehicles is reflected in the launch of the more reasonably priced long-range RWD Model Y.