Tesla, Inc. TSLA has introduced a more practical three-row version of its Model Y by adding a long-wheelbase variant to its U.S. lineup. The new model addresses a gap in Tesla’s SUV portfolio as competition in the electric SUV segment continues to intensify.
The Model Y L Premium Launch Series became available for orders through Tesla’s website and dealerships last week, with a starting price of $61,990 for the six-seat configuration. Although the long-wheelbase Model Y is not entirely new, it was first launched exclusively in China in mid-2025, marking its debut in the North American market.
Earlier this year, Tesla announced plans to discontinue the three-row Model X SUV and the Model S sedan as it shifted resources at its Fremont, CA, factory toward developing its Optimus humanoid robot. Introducing the long-wheelbase Model Y in the United States enables the company to offer a genuine three-row midsize electric SUV while keeping development costs and factory modifications relatively low. Aside from a modest exterior refresh, the Model Y has remained largely unchanged since its launch in 2019, making this update more evolutionary than revolutionary.
Compared with the standard Model Y, the long-wheelbase version measures 7.6 inches longer, reaching 195.9 inches in overall length and stands 1.7 inches taller at 65.7 inches. It also weighs about 212 pounds more, bringing its total weight to roughly 4,600 pounds. Most importantly, its wheelbase has been extended by 5.8 inches to 119.7 inches, providing additional interior space, particularly for the third row.
The Model Y L also offers several premium features not found on the standard version, including vehicle-to-load bidirectional power with a 120V/20A AC output through a charge-port adapter and an electronically controlled continuously variable suspension designed to deliver a smoother ride. Buyers will also receive a 12-month trial of Tesla’s Full Self-Driving (Supervised) system compared with the standard one-month trial, after which the subscription costs $99 per month. It remains unclear whether these enhancements will remain exclusive to the Launch Series or become standard on future Model Y L variants. The company expects to start deliveries this fall.
Tesla’s latest launch also arrives as several automakers expand their offerings in the midsize electric SUV segment. TSLA currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Closer Competition for Tesla Y L Model
Rivian Automotive RIVN began public customer deliveries of its all-new R2 midsize SUV on June 9, 2026. Priced at $57,990, the R2 Launch Package is slightly cheaper than Tesla’s Model Y L while offering comparable range and features. Rivian also plans to introduce more affordable variants over the coming months, with the entry-level R2 Standard expected to start at $48,490 in 2027. However, the larger three-row Model Y L is not a direct competitor to the R2, as it sits between the R2 and Rivian’s flagship R1S in terms of size and specifications.
Lucid Group LCID is also preparing to expand its presence in the midsize electric SUV segment. In March, the company unveiled the first two models built on its new midsize platform, the Cosmos and Earth, with production scheduled to begin later this year. Both SUVs are expected to start at under $50,000, making them significantly more affordable than Lucid’s current Gravity SUV and Air sedan. Despite the lower price point, Lucid says the new models will uphold its “Compromise Nothing” philosophy by delivering the range, efficiency and driving experience customers expect, while broadening the brand’s appeal to a larger market.
Tesla’s Price Performance, Valuation and Estimates
Tesla has outperformed the Zacks Automotive – Domestic industry in the last six months. Tesla has lost 9.4% compared with the industry decline of 10.4%.
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From a valuation perspective, Tesla appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 14.18, higher than the industry’s 3.42.
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The Zacks Consensus Estimate for 2026 and 2027 EPS has moved up 9 cents and 8 cents, respectively, in the past seven days.
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