Tesla’s New Model Y Performance Delivers Supercar Speed

The Tesla Model Y Performance has finally been revealed, but only for the European market. Tesla typically keeps its product line consistent in terms of specifications and features, so this gives us a very accurate idea of what we can come to expect when it finally arrives in the U.S. Despite suffering from a massive drop in sales over the last few months, the Model Y remains the American EV manufacturer’s most popular model and the most successful EV option by a very noteworthy margin.

Base Trim Transmission

Automatic

Base Trim Drivetrain

All-Wheel Drive

Base Trim Horsepower

425 HP

Base Trim Torque

475 lb.-ft.

Fuel Economy

120 MPGe Combined

The Performance derivative is an important addition to the catalog because it will add appeal to the range. This is unlikely to provide the brand with a noteworthy bump in sales, as analysts predict overall demand will decline throughout the third quarter, primarily due to the discontinuation of the Clean Air tax rebate. Regardless, the 2026 Model Y Performance remains an important model for the company, as it sets a new standard for fast EVs that can comfortably act as a comfortable daily driver with low running costs and practical battery range.

How The Model Y Performance Changes The Game

Tesla’s Crucial Refinements Add Appeal To The EV SUV

Tesla

The 2026 Tesla Model Y Performance retains a dual permanent-magnet synchronous motor configuration. Interestingly, the brand limits the combined power output to 460 horsepower, which is 40 down on the Model 3 Performance counterpart. The result is a claimed 3.3-second 0–60 MPH acceleration time and 155 MPH top speed limit. By applying the optional tow package, you also gain access to around 3,500 pounds of towing capacity.

2026 Tesla Model Y Performance And Specifications

For context, the standard dual-motor model produces a combined 425 horsepower and 475 pound-feet, affording it a 4.6-second 0-60 MPH acceleration time and 125 MPH top speed limit. The previous generation model featured a similar configuration, with a 456-horsepower combined output.

Key Performance-Minded Features

Tesla

Being a flagship Performance model, Tesla has kitted this Model Y with some key pieces of equipment, such as an all-new adaptive suspension configuration that works in conjunction with a revised stability assist mode that lets you customize your traction level between standard, reduced, and off modes, catering to your specific driving style at any given time. Joining this is a set of optimized performance tires by Michelin and refined brakes.

Key Exterior Design Elements

Keeping Things Subtle But Emotive

Tesla

The Tesla Model Y Performance introduces a revised exterior appearance, introducing new front and rear bumper design elements, a carbon rear spoiler, and 21-inch Arachnid 2.0 wheels. Tesla doesn’t give us any specifics, but it claims that the redesign works to improve the Model Y’s drag coefficient without compromising overall downforce.

As for exterior colors, Europeans currently have access to Stealth Gray as the only standard option. The region has to pay extra for Pearl White Multi-Coat, Diamond Black, Deep Blue Metallic, Quicksilver, and Ultra Red.

A Minimalist Interior With Performance Touches

Tesla

The interior keeps to Tesla’s design philosophy, which is to be expected. This includes a 16-inch QHD touchscreen infotainment system, performance bucket sports seats with thigh extensions, heating, and ventilation upholstered in black synthetic leather, which you can upgrade to black and white at a cost.

The Performance Will Arrive In The U.S. Later This Year

Tesla Gets It Ready For The 2026 Model Year

Tesla

Tesla’s strategy has always been to introduce a refreshed model for the European market before bringing it to the United States. A big reason for this is because of the level of testing that the brand needs to undergo for efficiency and safety. The Model Y Performance sits with a 360-mile range claim based on the relatively conservative WLTP cycle. It features Basic Autopilot in the package, which includes Autosteer and traffic-aware cruise control. European consumers do have access to:

• Enhanced Autopilot
• Driver-initiated assisted driving, lane change, and overtaking assist
• Dumb Summon
• Smart Summon
• Autopar

Full Self-Driving is available as the flagship safety suite, including traffic light and stop sign control. The brand also promises a future update that suggests near autonomy with minimal driver intervention.

What We Can Expect In Terms Of Pricing

Tesla

In the UK, Tesla lists the Model Y Performance for £61,990, which is roughly $83,200. Bear in mind that taxes and fees in the UK are substantially more than what Americans have to pay when they purchase a vehicle. To give you some kind of reference point, the Long-Range Rear-Wheel Drive costs roughly $65,700 in that region, which is a lot more than Tesla U.S.’s $44,990 starting price.

How The Model Y Compares To The Model 3

The Sedan Benefits From Better Performance

Tesla

Despite the Model Y effectively being an SUV counterpart to the Model 3 and featuring identical mechanical components, it doesn’t appear to benefit from the same performance outputs. Further adding confusion is the fact that the Model Y’s dual-motor configuration is noticeably more powerful than the Model 3’s, resulting in a much smaller gap between the SUV’s top derivatives.

Tesla Model 3 Performance Specifications

Opting for the top-of-the-range Performance derivative gets you access to its 510-horsepower and 546 pound-feet combined state-of-tune. The result is a 2.9-second 0-60 MPH time and a 163-MPH top speed figure.

Tesla’s Sales Decline In The U.S. Is A Big Issue

Tesla

Tesla’s Model Y U.S. sales decline reflects several issues affecting both the brand and the electric car industry, including challenges affecting supply and demand. As of Q2 2025, Tesla confirms that Model Y volume dropped an estimated 15 percent year-over-year, from over 100,000 units in Q2 2024 to about 75,000 in Q2 2025.

Interestingly, the market reveals that the refreshed Model Y Juniper update’s changes were not substantial enough, resulting in buyers feeling somewhat underwhelmed. Tesla’s global factories are also currently running well below capacity, with just 70 percent production capacity in Q2. This is despite substantial inventory backlogs, suggesting demand has softened even as supply constraints eased.

Tesla also lost ground to rising competition, namely legacy automakers and Chinese EV makers that now offer compelling alternatives to consumers. Added to this, weakening consumer sentiment spurred by Elon Musk’s political controversies, public backlash, and rising vandalism has ultimately damaged the brand’s appeal. In California, Model Y registrations plunged nearly 30 percent in Q1 2025, which is the product’s most popular region. Fading federal incentives further erode affordability, with tax credits ending by the end of this month.

Used Values Further Damage The Model Y’s Reputation

Unplugged Performance

Resale values for the Model Y are dropping, with used prices falling by nearly 12 percent year-over-year. This makes used alternatives more attractive. According to iSeeCars, the 2026 Tesla Model Y range currently sits with a 7.1/10 retained value rating, with the publication indicating that an example will lose $36,499 or 60.8 percent of its value after five years and 60,000 miles. J.D. Power rates this model’s resale a bit more respectively, with an 85/100 resale rating, together with 69/100 for quality and reliability, and 81/100 for the driving experience, bringing its overall consumer-verified score up to 76/100.

2025 Tesla Model Y True Cost To Own

According to the Edmunds True Cost To Own evaluation, a full five-year and 60,000-mile ownership experience of a Tesla Model Y Long-Range Rear-Wheel Drive will cost you $64,009, on top of the base MSRP. $28,372 of this accounts for depreciation, $1,341 for maintenance, $2,314 for repairs, and $6,855 for electricity. CarEdge‘s ownership cost evaluation looks at the entire Model Y range and indicates that you’ll spend $65,526. This includes $30,789 on depreciation, $1,975 on electricity, $22,695 on insurance, $8,672 on financing, and $1,395 on maintenance.