Tesla has slashed prices on its popular Model Y and Model 3 vehicles for the third time in just two months. These significant reductions, ranging from $3000 to $5000, make Tesla’s offerings more competitive than ever, with the Model Y now even cheaper than the Toyota RAV4 Hybrid.
The most affordable Tesla Model Y Rear-Wheel Drive (RWD) is now $5000 cheaper than it was just yesterday, totalling a $9500 reduction over the past two months. This brings its price down to $55,900 plus on road costs, making it more affordable than the top of the range Toyota RAV4 Hybrid, which is priced at $58,360. Furthermore, the Model Y is now nearly $17,000 cheaper than the base model Kia EV6 electric SUV.
Similarly, the entry level Tesla Model 3 RWD has seen its price cut by $4000, now starting at $54,900 plus on road costs. This puts the Model 3’s price tag at under $60,000 drive away in many Australian states and territories, positioning it just $3500 more than the most expensive Toyota Camry Hybrid ($51,417).
The Tesla Model 3 Long Range all wheel drive (AWD) sedan has also received a price cut of $3000, bringing its new starting price to $64,900 plus on road costs.
Here’s a quick look at the updated prices for Tesla’s 2024 Model 3 and Model Y in Australia:
2024 Tesla Model 3:
- 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)
2024 Tesla Model Y:
- 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 listed exclude on-road costs.
These substantial price cuts come at a time when Tesla deliveries in Australia are only 5.6% higher this year, compared to a market-wide increase of 14.4%. Despite this, the overall sales of electric cars in Australia have seen a 32% increase year-to-date, although they did experience a decline last month – the first in three years.
Tesla has a history of passing price reductions on to customers who have already placed orders or are awaiting delivery, ensuring that buyers benefit from the latest pricing.
Tesla’s pricing strategy in Australia has seen significant fluctuations over the years. For instance, the price of the Tesla Model 3 RWD has varied from its initial launch price of $66,000 in July 2019, peaking at $73,900 in July 2020, before settling at its current price of $54,900 after the latest reductions. Similarly, the Model Y RWD, which was launched at $68,900 in June 2022, is now priced at $55,900.
With the Tesla Model Y now more affordable than key competitors like the Toyota RAV4 Hybrid and significantly undercutting other electric SUVs like the Kia EV6, Tesla’s aggressive pricing strategy is likely to attract a broader range of customers. This move also sets a high bar for other manufacturers in the electric vehicle market.
Tesla’s recent price cuts make the Model Y and Model 3 more accessible than ever, reinforcing the company’s commitment to expanding its market presence in Australia. With these reductions, Tesla continues to lead the charge in making electric vehicles a more viable option for Australian consumers.
