Tesla has slashed the entry price of its Model 3 in Australia by nearly 20 per cent as part of a suite of updates that include the addition of vehicle to load with all new EVs, a boost in range for some, and a price cut for the Model Y performance.
The most significant though is the decision by the US electric car and battery storage giant to slash the entry price for a Tesla EV in Australia to below $46,000 before on roads for a “stripped down” version of the Model 3. It comes amid a surge in interest in EVs among Australian car buyers, and intense competition from a growing number of Chinese competitors.
A new base Model 3 RWD will start at just $45,990 before on-road costs – well below the current asking price of the existing RWD premium of $54,990, and significantly below the asking price of around $66,000 when the Model 3 RWD was first released in Australia in 2019.
The Model 3 was once the best-selling EV in Australia but has slipped down the rankings after the arrival of the bigger Model Y SUV, and a host of Chinese competitors.
The Model 3 is ranked seventh among EVs with 4,597 sales up to the end of August, according to The Driven’s month by month EV sales data. It was ranked 3rd in 2025, and while the Model Y remains the best-selling EV – and indeed car of any type – in Australia, BYD is now the best selling EV brand in Australia, thanks to having multiple models.
Tesla says the first customer deliveries of the new base-level Model 3 will commence from mid-October in Australia and will help the company meet demand for “affordable, high-quality electric vehicles” and lower the barrier to ownership.
Some of the features removed from the “premium” version of the Model 3 include rear screen, ambient lighting, and a change in materials for the seats. A stripped down version of the Model Y, still the best selling EV in Australia, is likely to follow and has already been released in the US and Europe.
“Model 3 Rear-Wheel Drive is the most affordable way for Australians and New Zealanders to own a Tesla, and the most accessible way to experience Full Self-Driving (Supervised),” Thom Drew, Tesla’s country director, said in a statement.
“Customers get the Model 3 they know, the silhouette, panoramic glass roof, ride comfort, over-the-air updates and Supercharger network access, at a price point that makes Tesla ownership a straightforward decision.”
The Model 3 RWD will feature vehicle-to-load – via a special adapter – and offer 572 km of range (WLTP) from its 60 kWh battery, and will get from 0 to 100 km/h in 6.2 seconds.
The seats will be a mix of flat-woven textile and vegan leather, and the rear passenger touchscreen has been omitted. The pricing for the remaining Model 3 variants appears to be unchanged, but Tesla says Model 3 Premium and Performance gain a new 16-inch first-row touchscreen, a dark headliner and a Zen Grey interior option.
The Model 3 Premium is also available with new 19-inch Dark Nova wheels, and the Model 3 Performance also benefits from an increase in range, up 29 km to a total of 600 km (WLTP) from the 571 km currently available in Australia.
Tesla announced that the asking price of the Model Y Performance will now start at $84,900, down from $89,900 before on roads, as a result of a shift in production to Gigafactory Shanghai, where the costs of building it are cheaper.
The Model Y variants are also quicker, with the Model Y Premium Long Range All-Wheel Drive now able to accelerate from 0 to 100 km/h in 4.3 seconds, and the Model Y L Premium All-Wheel Drive in 4.5 seconds.
You can find The Driven’s detailed EV sales data here: Australian electric vehicle sales by month in 2026; by model and by brand.
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