Does it drift? You bet it does.
This isn't the first time we've seen the Model Y drift and it surely won't be the last. There's just something so raw about seeing a crossover go sideways as it shreds up its tires.
In order to get the Model Y to drift like this, you have to activate dyno mode (a feature toned down by Tesla recently), which eliminates a lot of the safety nannies that Tesla has in place. Therefore, we only advise use of this in a controlled environment and under extreme care.
Hopefully, Tesla will soon add Track Mode to the Model Y (a feature found on the Tesla Model 3) though the automaker has not suggested it will be offered in the Y.
As for the Model Y seen ripping it up in the video above, it's the work of Tesla tuner Unplugged Performance and features a set of coilovers that are currently being developed for Tesla's electric crossover. Unplugged Performance intends to over all sorts of aftermarket parts for the Model Y, much in the same way that it does for the Model 3.
Video description via Unplugged Performance on YouTube:
Testing out our Tesla Model Y coilovers at Willow Springs Raceway. Model Y drift!