To achieve its dramatic price cut, the 2026 Model Y RWD Standard removes much of the once-standard content that made it an entry-level luxury EV SUV. The biggest loss for Model Y owners will be Autopilot, as the basic model no longer includes Autosteer. Owners can still add the $8,000 Full Self-Driving (FSD) option, but it’s unclear why basic Autopilot functionality isn’t included—especially when FSD still relies on the same underlying systems.

The Model Y does retain adaptive cruise control, putting it roughly on par with the Hyundai Ioniq 5 SE RWD Standard Range, which offers Smart Cruise Control with stop-and-go and curve control functions.

Another odd omission from the Model Y RWD Standard: AM/FM radio connectivity. You’ll find multiple ways to stream music via your phone, but no way to access traditional terrestrial radio stations. This could pose problems in emergencies when radio access is critical. Some smartphones can tune in via internet streams, but not all can receive true FM signals. In contrast, the Ioniq 5 retains a standard AM/FM tuner.

The Model Y claws back some ground with a seven-speaker sound system (compared to six in the Hyundai) and a 15.4-inch infotainment screen versus Hyundai’s 12.3-inch unit. However, the Ioniq 5 balances things out with a 12.3-inch digital instrument cluster directly in front of the driver—something Tesla still doesn’t offer.

Tesla’s New Cheaper Model Y Is Already Beat on Price By One of Our Favorite EVs

Tesla’s more-affordable Model Y has a strong competitor—let’s see how they stack up.Justin BannerWriter

MotorTrend StaffPhotographerManufacturerPhotographerOct 08, 2025

Who knew the loss of the federal EV tax credit could potentially spark a pricing war for new EVs? While some automakers are resorting to leasing schemes, Hyundai and Tesla have decided to bite the bullet and offer their most popular electric crossovers at lower starting prices. With these two EV SUVs now available for less than $42,000, how does the Tesla Model Y RWD Standard compare to the Hyundai Ioniq 5 SE RWD Standard Range?

The Cost to Your Wallet

Let’s start with the big one: price. The starting prices of both EV SUVs sit well under the $45,000 mark and are nearly on par with ICE models of similar size, but only the Hyundai Ioniq 5 SE RWD Standard Range can truly claim to be under $40,000. Even with destination (a $1,600 charge from Hyundai), the Ioniq 5 SE Standard Range comes in at just $36,600.

As we noted when the news first broke, that’s $7,600 less than it was in 2025, and now $5,030 less than the newly announced Model Y RWD Standard ($41,630). Both represent significant price reductions (the Y RWD Standard is $5,000 cheaper than the Y RWD Premium), but only one of these vehicles had to be drastically decontented to hit that lower base price.

Which Gives You More for Your Money?

To achieve its dramatic price cut, the 2026 Model Y RWD Standard removes much of the once-standard content that made it an entry-level luxury EV SUV. The biggest loss for Model Y owners will be Autopilot, as the basic model no longer includes Autosteer. Owners can still add the $8,000 Full Self-Driving (FSD) option, but it’s unclear why basic Autopilot functionality isn’t included—especially when FSD still relies on the same underlying systems.

The Model Y does retain adaptive cruise control, putting it roughly on par with the Hyundai Ioniq 5 SE RWD Standard Range, which offers Smart Cruise Control with stop-and-go and curve control functions.

Another odd omission from the Model Y RWD Standard: AM/FM radio connectivity. You’ll find multiple ways to stream music via your phone, but no way to access traditional terrestrial radio stations. This could pose problems in emergencies when radio access is critical. Some smartphones can tune in via internet streams, but not all can receive true FM signals. In contrast, the Ioniq 5 retains a standard AM/FM tuner.

The Model Y claws back some ground with a seven-speaker sound system (compared to six in the Hyundai) and a 15.4-inch infotainment screen versus Hyundai’s 12.3-inch unit. However, the Ioniq 5 balances things out with a 12.3-inch digital instrument cluster directly in front of the driver—something Tesla still doesn’t offer.

Range and Charging

When it comes to batteries, Hyundai has been very competitive, but not this time. The Ioniq 5 SE RWD Standard Range uses a 63-kWh battery, while the Model Y Standard gets a 69.5-kWh pack. That gives the Tesla a 76-mile advantage in terms of range, with up to 321 miles of range versus 245 miles for the Ioniq 5.

Charging speeds are closer. On a 400-volt NACS charger, the Model Y can pull up to 225 kW, adding up to 160 miles in just 15 minutes. The Ioniq 5 SE RWD Standard Range, when using a J1772-CCS adapter, can DC fast charge up to 250 kW, going from 10–80 percent in 20 minutes, or add about 140 miles in 15 minutes. On a 150-kW charger, the 10 to 80 percent time extends to about 24 minutes.

Power and Speed

Both models use smaller batteries and less powerful motors. Tesla hasn’t published an output figure for its new entry model, but the Model Y RWD Standard is claimed to hit 0–60 mph in 6.8 seconds. The Ioniq 5 SE RWD Standard Range produces 168 hp and 258 lb-ft of torque, with a curb weight of 4,144 pounds, likely putting its 0–60 time a second or two behind the Model Y. The edge here clearly goes to Tesla.

Full Tactile Control

If you prefer tactile controls, Hyundai wins. The Ioniq 5 uses a traditional gear selector and stalk-mounted light controls instead of the Model Y’s capacitive-touch steering wheel buttons and screen-based gear selection. If you like a start button rather than Tesla’s get-in-and-drive approach, the Ioniq 5 has that, too.

Hyundai also maintains physical seat controls, while Tesla moves those to the touchscreen. Both vehicles have heated front seats and a manual folding function for the second row, but Tesla offers rear HVAC vents, something Hyundai limits to the front row.

It’s not a lot of choice to be sure, but Hyundai offers two interior color schemes (gray two-tone or black two-tone) while Tesla sticks with a single black interior.

Exterior Features

The Ioniq 5 SE RWD Standard Range wins another point with 19-inch wheels versus the Model Y’s smaller 18-inch wheels. Hyundai also undercuts Tesla on paint pricing: four no-cost colors (Abyss Black, Lucid Blue, Digital Teal, and Atlas White), plus Cyber Gray for $500. Tesla’s cheapest option, Pearl White Multi-Coat, costs $1,000, and Diamond Black is a hefty $1,500.

For cargo access, Tesla has the upper hand. The Model Y RWD Standard includes a hands-free power liftgate that opens automatically upon approach, while the Ioniq 5 SE RWD Standard Range uses a manual liftgate. To get a power liftgate on the Hyundai, you’ll need to upgrade to the SEL trim. Of course, that one starts at $41,400, still $230 cheaper than the Model Y Standard. It’s not a practical feature per se, but worth mentioning that the lower-priced Model Y lacks the front lightbar of pricier models.

External Power

Here’s a big win for Hyundai: Vehicle-to-Load (V2L) capability. With a $270 adapter, the 2026 Ioniq 5 SE RWD Standard Range can power tools, appliances, or even another EV. Tesla doesn’t offer V2L on the Model Y RWD; this functionality is only available on the Performance trim, and even then, it requires two separate adapters totaling $380.

This gives Hyundai’s base model a major advantage—especially for buyers planning tailgates, camping trips, or outdoor adventures. V2L can eliminate the need for an extra gas-powered or solar generator.

Conclusion

If your goal is to get into a reasonably sized, affordable EV, it’s hard to beat the 2026 Hyundai Ioniq 5 SE RWD Standard Range. It starts at less than $40,000, and for the same price as a Tesla Model Y RWD Standard, you could upgrade to a longer-range 84-kWh Ioniq 5 SE RWD ($39,100), a feature-rich SEL RWD ($41,400), or even an SE AWD for just $970 more.

Both are assembled in the U.S., the Tesla in California and Texas and the 2026 Ioniq 5 at Hyundai’s Metaplant in Georgia. The primary advantages Tesla retains when we look at base model against base model are speed and range, both of which diminish as soon as you move slightly up the Hyundai lineup. With Hyundai’s aggressive pricing and native NACS compatibility, the Model Y’s grip on the EV market appears to be loosening.