New Tesla Model Y review: World’s best selling EV is now even better, and it costs less

“We don’t talk politics, we just talk product.” The Tesla marketing people are making very clear what the rules are as they host another group of journalists for the official Australian launch of the new Model Y electric SUV. Just as well, then, that they have a product that is well worth talking about.

Tesla has changed what the world thinks about electric vehicles, and also what it thinks about the transition to renewables. It has done that by making products that a decade ago were not thought possible, stunningly good EVs and big and small batteries for the grid. It’s hard to argue that any company has done more to accelerate the world’s green energy transition.

One of those EVs is the Model Y, the electric SUV that has at times been the world’s best selling car of any sort, and the best selling EV in Australia, trailing only the popular diesel utes that have become a no brainer for tradies and families largely because of their massive tax advantages.

The Model Y is now being relaunched, a year after a similar refresh for the Model 3 electric sedan. And here’s the remarkable conclusion: This car, already good, is now much better, and it even costs less than the original Model Y when it was released on the Australian market nearly three years ago.

That is probably just as well. Many of those original Tesla customers were buying a transition story as much as a car, and were forgiving of its faults, including poor suspension in the RWD model and an interior that has not stood the test of time and the rigours of Australian life.

But Tesla can no longer ride a wave of “wokeness” to its revenue targets. The customers remaining loyal to the brand, and the new ones coming through the door, are focused on buying the tech. And the newbies are being presented with choice, and competition, which means Tesla has to get that tech absolutely right.

And, with the new Model Y, it’s pleasing to report, it pretty much has.

The Driven contributors Riz Akhtar and Tim Eden have already written detailed reports about their experience with the new Model Y, and they got to enjoy the vehicle over several days.

I drove it for just under four hours, through the Sydney suburbs, the Royal National Park, the Macquarie Pass, across the southern highlands and back down the highway. As a long time Tesla owner – an original California-made Model 3 RWD, and one of the first Model Y RWDs in Australia, I was keen to see what’s new. So here’s a quick take.

Handling and suspension is so much better

When our Model Y arrived in 2022, we were overseas catching Covid, so my son was sent to pick it up from the Tesla delivery centre. The bumps were so bad he very nearly turned around and took it back (Tesla was also giving away free patisseries, it should be noted). He didn’t, but it was clear to us, from the get go, and having a Model 3 to compare it with, that the suspension on the Model Y was not great.

That was underlined when the AWD version was released. Its suspension was good, and it seemed like a different car. The good news with the new Model Y is that the steering and the suspension on the RWD variant is excellent. According to Riz, who has now driven both the RWD and the AWD, there is little difference between the two.

The improvement in the new Model Y was immediately obvious leaving the Tesla HQ in Alexandria, was confirmed in the winding roads of the Royal National Park, and I had no problem keeping up with the three motor cyclists seeking to make the most out of the tight turns going up Macquarie Pass. Gravity? I know you not.

It should be noted that the RWD is no slouch, with a 0-100 kms time of 5.9 seconds, which is a second quicker than the original RWD. That makes it a lot of fun. I had a lot of fun.

Um, there’s a stalk missing

In the Model 3 refresh, Tesla decided to remove both stalks, and put the functions on the screen or assigned them to buttons on the steering wheel. It was controversial enough that Tesla has decided to keep one stalk on the Model Y, essentially the one you use as an indicator.

The right stalk has gone, and gear choice is now at the right of the main screen (not really an issue because it is a function that is only used once stopped), and the controls for adaptive cruise and auto pilot are now on the right steering wheel button, along with the camera and the voice command.

Tesla is now offering Enhanced Auto Pilot for $5,100. This includes lane change (which I really liked), and parking and summon (which I think is just a gimmick). For $10,100 you can get the gear for full autonomy, but you might want to question if that is actually going to be a thing – in Australia – during the time of your ownership.

Design changes inside and out

Like the Model 3, the new Model Y has had a change of look – most notably from the front with a more angular bumper and a light bar across the bonnet that many will find appealing.

The back has a squarer look that doesn’t get me too excited, but if we were too worried about the backside of a vehicle, then there are a lot of car models we would never have bought.

The inside has a little more bling, maybe it is for the Asian market, but it is not overbearing, and the interior materials are clearly of a better quality than the original. They needed to be, it must have been costing Tesla millions in replacing degraded steering wheels and head rests.

Delightfully, there is also a bigger frunk. Tesla has by far the biggest and best frunk in the business, because it wraps up its electric motor in a smaller space. Its rivals are still trying to figure this out and some of their frunks are ridiculously small. With the new Model Y, you could put in an esky. Or even use it as one, or a wet box. It has a plug to let out water.

High efficiency, very quiet

The range for the Model Y is officially listed at 486 kms. That’s not what the car told me when I got in (420 kms) and after the battery state of charge had been reduced to 50 per cent it showed 209 kms left, consistent with the original prediction of 420 kms.

But it seems pretty efficient. I was driving it as hard as I could within the road rules i.e. chasing motor bikes up hills, etc, enjoying the acceleration whenever I could, and it still ended up with an average for the day over 270 kms of 122.8 watt hours per kilometre. Try finding another EV – apart from the Model 3 – that can match that.

Note in the image above, the Model Y  used just 84.2 watt hours per kilometre on the way back – that’s downhill from the southern Highlands into Sydney, and mostly on autopilot, and sitting bang on 110 km/h. But it is impressive, and over time – that saves money, even if charging at home with rooftop solar.

The car is also quiet, much quieter than the original Model Y. And the sound system is pretty good quality too – and I took the opportunity to crank up Spotify’s greatest hits from the 1980s. Yes, I am that old.

Cost

The new Model Y RWD – with a 60 kWh battery – is being offered at $58,900 before on roads, and would be around $64,000 on the road, depending on what else you wanted included, and what colour you choose. The AWD long range version starts at $68,900 before on roads. (Check out our Models pages for all EV prices).

That is pretty good. The on-road version of the first Model Y we bought in 2022 was just over $72,000. So the cost has come down, and the performance and the quality has improved. That’s what it should be, given battery costs have come down and there have also been manufacturing efficiencies. Shame we don’t see such cost reductions across the board.

The one thing missing is vehicle to load. Tesla is now one of the very few EVs on the road that do not offer V2L, nor do they do much with V2G. As we found it during the recent cyclone, that means more than 110 kWh sitting unused in the garage. We know it can be done, because the Cybertruck offers what is calls “powershare”. But there is no information on when it will be available for the Model 3 or the Model Y.

Conclusion

The Tesla team wants it to be known that they are very much focused on their mission, for obvious reasons. The company  has great products, arguably the best in the world, and it would be hard to argue that they are not the best value for money.

The company has also been, despite fierce opposition over the last decade and more, a phenomenal change agent, and our lunchtime break was hosted at an off-grid home, just to underline the company’s determination to be seen as a force for positive good, despite the noise you hear around it.

That’s reassuring to know. There is no doubt about the quality of the product, and it’s hard to imagine the Model Y not being the best selling EV in the world in 2025.

At one time you could assume that daylight would come second – but that’s not so obvious now. No other company has delivered so much, and been subject to so much controversy.

That makes it one of the most fascinating stories of the EV revolution we are in the middle of.  One of those 1980s hits I was listening to going up Macquarie Pass was the Joy Division’s Love Will Tear Us Apart. The title seemed apt.

Table of key specifications for the Model Y