Tesla Model Y Long Range AWD to be discontinued in Malaysia, single AWD variant left

Tesla Malaysia has confirmed that the Long Range All-Wheel Drive (AWD) variant of the Tesla Model Y will soon be removed from the local lineup, marking the second discontinuation of an AWD variant in just a few months. The move follows the earlier axing of the Tesla Model 3 Long Range AWD in April this year.

According to a Tesla Malaysia spokesperson, the Model Y Long Range AWD will be taken off the online configurator within the next two days, despite currently still being listed at a price of RM245,065 on-the-road (without insurance). While the exact reason for the discontinuation has not been formally disclosed, industry observers note that Tesla has been streamlining its model offerings globally to simplify production and reduce inventory complexity.

With the Long Range AWD variant gone, the Tesla Model Y lineup in Malaysia will now consist of three variants: the entry-level Rear-Wheel Drive (RWD), the Long Range Rear-Wheel Drive (RWD), and the six-seater Model Y L. The six-seater Model Y L, priced at RM262,615, will be the sole all-wheel drive variant available for purchase. The RWD variants start from RM197,575 for the base model.

It is worth noting that no pricing revisions have been announced, despite the new CBU EV import regulations for Franchise AP holders which took effect on 1 July 2026. These regulations mandate a minimum CIF (Cost, Insurance, and Freight) value of RM200,000 and a minimum power output of 245 hp (180 kW). The Tesla Model Y, which is imported from China, continues to comply with these requirements.

The discontinuation of the Long Range AWD variant may signal a strategic shift by Tesla to focus on more popular configurations and to better align with market demand. For now, Malaysian buyers looking for an all-wheel drive Tesla Model Y will have to turn to the six-seater Model Y L, which offers additional seating capacity but at a higher price point.