Tesla plans to stabilize Model Y pricing in Australia

Tesla was previously known for frequently changing its prices, which kept it competitive in the rapidly evolving electric vehicle (EV) market but also created uncertainty among buyers.

Thom Drew’s announcement marks a significant shift: the new Model Y, launching in Australia in May 2025, will now have stable pricing. This comes at a time when the Model Y was Australia’s best-selling EV in 2024, despite Chinese automakers like BYD and Geely entering the market with cheaper alternatives.

Drew stated, “We are certainly not going to get into price wars.” He believes the upgraded Model Y’s pricing is now at the right level and offers “exceptional value for money” due to its improvements.

The rear-wheel-drive (RWD) Launch Edition has already sold out, but its regular version will soon be available, alongside the Long Range all-wheel-drive (AWD) version, which can still be ordered. Initial shipments in May will be large-scale to meet significant demand.

This pricing stability is a response to the growing presence of Chinese EVs, such as the Geely EX5, which starts at $40,990—considerably lower than the Model Y’s starting price of $63,400.

Drew says Tesla will maintain its edge by focusing on quality, competitiveness, and ownership experience without resorting to price cuts. He noted that the Model Y is currently the most affordable option in its category in Australia, though he didn’t provide direct comparisons.

Chinese automakers are stirring up the global EV market with affordable, feature-rich vehicles. In Australia, where right-hand-drive (RHD) vehicles are required, this pressure intensifies. Tesla’s Shanghai Gigafactory supplies these to the Asia-Pacific region.

Meanwhile, reports suggest Tesla may introduce a cheaper Model Y in China by 2026, which could later impact other markets. Drew said he’s unaware of such plans for Australia but would welcome them.