Tesla (TSLA) Updates 2026 Model Y with Third Row Seating and Sleeker Interior
Tesla's 2026 Model Y will feature a third-row seating option, returning to the U.S. market for the first time since its removal. This seven-seat setup is available on the Premium All-Wheel-Drive Long Range variant for an additional $2,500. The model also includes design and tech upgrades, such as a new 16-inch center display. While not a full replacement for larger SUVs, the updates aim to keep the Model Y competitive in the EV market. TSLA stock has a Hold consensus rating, with a current price target suggesting a 10.47% downside risk.
Tesla's (TSLA) popular Model Y is getting a new look for 2026, and the key upgrade is the return of the third‑row seating option in the U.S. The seven-seat setup is now back on the EV giant's online configurator, making it available again for the first time since it was removed in earlier updates.
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The new third row is offered exclusively on the Premium All-Wheel-Drive Long Range variant and costs an additional $2,500. As before, the seats are compact and best suited for children, with limited leg and headroom, a design choice that keeps Model Y's footprint unchanged while still boosting passenger capacity.
Beyond seating, Tesla has rolled out a handful of design and tech upgrades for the 2026 model. Premium trims now feature a black headliner, a darker 20-inch Helix wheel option, and a new 16-inch high‑resolution center display, previously seen in China on the Model Y Performance and Model YL.
2026 Model Y to Help TSLA Stay Competitive
The return of the third row is helpful for buyers who need extra seats occasionally without upgrading to a bigger SUV. While it is not a full replacement for a true three-row model, the new model adds flexibility for families with small kids.
While Tesla's 2026 Model Y refresh is not a dramatic overhaul, the combination of added seating, upgraded tech, and cleaner interior styling helps keep the company's most popular SUV competitive in an increasingly crowded EV market.
Is TSLA Stock a Buy?
Turning to Wall Street, TSLA stock has a Hold consensus rating based on 12 Buys, 11 Holds, and seven Sells assigned in the last three months. At $401.93, the average Tesla price target implies a 10.47% downside risk. The stock has gained 41.67% over the past six months.
