Tesla Model Y Standard vs. Hyundai Ioniq 5: The Better Value Is Obvious

• The Tesla Model Y Standard reduces the SUV's price by $5,000 thanks to tons of cost-cutting measures.
• Thanks to recent price cuts, the well-equipped 2026 Hyundai Ioniq 5 SEL RWD costs only $170 more than the Model Y Standard.
• You should probably (definitely) buy the Hyundai over the Tesla.

Many other changes, though, are more egregious. The frunk has been redesigned; it's now smaller and no longer features a carpeted lining, nor do the interior door pockets. The full center console is gone, replaced by an open storage bin. Autosteer, a longtime Tesla signature, is only available via a $99 per month subscription, or buyers can pony up $8,000 for Tesla's Full Self-Driving system despite its well-documented flaws. Even the HEPA filter has been removed, which is bad news if you have allergies. The suspension has also been changed and is now less sophisticated than before, which might mean the Model Y Standard will ride worse than its Premium counterpart.

Perhaps the most absurd change, though, is the roof. While still made of glass, the inside has been covered with a fabric headliner; Tesla says this aids in sound insulation, which is good, considering it also removed the Model Y's dual-pane glass. It also says it was cheaper to cover the panels in fabric than to fit a new metal roof. Oh, and want a color other than gray? That'll be an additional $1,000 for white, or $1,500 for black, and those are your only options. Yikes. 

All that is to say: This is a seriously de-contented vehicle with obvious cost-cutting measures that don't feel worth a $5,000 savings. It should probably be significantly cheaper.

What does the Ioniq 5 SEL RWD offer that the Model Y Standard doesn’t?

Comparatively, the Ioniq 5 SEL RWD is an absolutely killer value. At an EPA-estimated 318 miles, range is about the same, and it'll charge far faster — at up to 350 kW. Plus, you still get access to the Tesla Supercharger network and a NACS port as standard, so the Model Y doesn't have a leg up there either. The front seats, rear seats, and the steering wheel are all heated and upholstered in faux leather.

Hyundai's solid Highway Driving Assist 2 is standard kit, and while it's not a fully hands-free system, it should offer more assist than the Model Y Standard's basic adaptive cruise control. Wireless Apple CarPlay and Android Auto are included, while Tesla doesn't offer them on any model. Premium-looking 19-inch wheels are standard, too, as are power-folding side mirrors. The Ioniq 5 is down on power versus the Model Y Standard, with 225 hp on tap, but its claimed 7.4-second 0-60 time is relatively inoffensive and only marginally slower than the Tesla's advertised 0-60 time.

Additionally, and importantly, the SEL RWD has the same design inside and out as other Ioniq 5 trims — it doesn’t look like an obviously stripped-out vehicle in the same way the Model Y Standard does. It also has a center console, a driver's display so you don't have to constantly peer over to your left, and a glovebox that opens with a real handle, not a button in the screen. Even better, the Ioniq 5's design doesn’t resemble a bar of soap, it has always been great to drive, and you can get it in six different no-cost colors. 

Price parity, feature & quality discrepancy

Frankly, we're not sure why anyone would consider purchasing a Model Y Standard when the Ioniq 5 SEL RWD can be had for almost exactly the same price. In fact, even the $39,100 SE RWD trim offers about the same level of equipment as the Y, and again, it doesn't feel like a bargain shop basement cheap-mobile. If you're looking to spend about forty grand on an electric SUV, please do yourself a favor and test-drive an Ioniq 5 SEL RWD before you commit to that Tesla. We have a hunch it'll be worth the time.