Tesla slashes prices in Australia for third time in two months, up to $5000 off Model Y, Model 3 (2024)

The price of the most affordable Tesla Model Y is now close to $10,000 cheaper than it was two months ago, after another round of significant price cuts were introduced by the US electric-car giant in Australia.

After handing down two rounds of price cuts last month – with reductions of up to $8500 – Tesla has taken $3000 to $5000 off its most popular Model 3 and Model Y variants, effective today.

The cheapest and most popular version of the Model Y – the Rear-Wheel Drive – is now $5000 cheaper than it was yesterday, for a total price reduction of $9500 in two months.

It is $16,400 – or almost an entire Kia Picanto city hatch – cheaper than it was 18 months ago.

At $55,900 plus on-road costs, the base Model Y is now more affordable than a top-of-the-range Toyota RAV4 Hybrid ($58,360) – and almost $17,000 cheaper than the most affordable Kia EV6 electric SUV ($72,590).

The entry-level Tesla Model 3 Rear-Wheel Drive has had its price slashed by $4000 to $54,900 plus on-road costs – or less than $60,000 drive-away in many Australian states and territories.

It is now 'only' $3500 dearer than the most expensive Toyota Camry Hybrid ($51,417), which is likely to incur a price rise for the new model due later this year that is expected to narrow the gap further.

The Model 3 Long Range all-wheel-drive sedan has been given a price reduction of $3000, to $64,900 plus on-road costs.

Unchanged in the latest round of price cuts are the Model Y Long Range and Performance all-wheel-drive SUVs, as well as the recently-launched Model 3 Performance sedan.

The US car giant has historically passed on price cuts to customers waiting in the queue, whether they have just placed an order or are soon to take delivery.

The third round of reductions in two months comes as Tesla deliveries in Australia are only 5.6 per cent higher so far this year – in a market up 14.4 per cent.

Sales of electric cars in Australia declined for the first time in three years last month, though the year-to-date tally is still up 32 per cent compared to the same period last year.

• Model 3 Rear-Wheel Drive – $54,900 (down $4000)
• Model 3 Long Range AWD – $64,900 (down $3000)
• Model 3 Performance AWD – $80,900 (unchanged)

• Model Y Rear-Wheel Drive – $55,900 (down $5000)
• Model Y Long Range AWD – $69,900 (unchanged)
• Model Y Performance AWD – $82,900 (unchanged)

Note: All prices above exclude on-road costs.

Prices listed above include Luxury Car Tax (where applicable) because it is industry practice to include LCT, however Tesla excludes it from its base prices. The RRPs listed above also exclude Tesla's $1375 delivery fee and $350 ordering fee ($150 prior to December 2021), and exclude on-roads costs such as stamp duty, registration, and compulsory third-party insurance. From 6 January 2023, Tesla's delivery fee increased to $1400 and the ordering fee increased to $400. Sources: RJ Pound, Redbook and Tesla. Data compiled by Drive.com.au data centre, Alex Misoyannis and Joshua Dowling.

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