Tesla Model 3 cuts entry price

Tesla has introduced a new entry-level Model 3 Rear-Wheel Drive variant in Australia, lowering the sedan's starting price to $45,900 before on-road costs and making it the cheapest electric sedan currently on sale locally. The expanded MY27 range also brings increased driving range, vehicle-to-load capability across all variants, and upgrades for Premium and Performance models.

The biggest change to Tesla's MY27 Model 3 range is the arrival of a new Rear-Wheel Drive variant positioned below the existing Premium RWD.

Priced at $45,900 before on-road costs, the newcomer undercuts rivals including the BYD Seal Premium and Kia EV4 Air while becoming the most affordable Tesla available in Australia.

The lower price has been achieved through a reduction in equipment compared with the Premium RWD. The new entry-level variant omits the rear passenger touchscreen, ventilated front seats and full-width dashboard ambient lighting. It also receives a simplified seven-speaker audio system and seat trim combining textile inserts with leatherette upholstery.

Despite the lower asking price, Tesla has retained key features including a panoramic glass roof, matrix LED headlights, a powered boot-lid, heated front seats, heated steering wheel, wireless phone charging, heat pump and a 16-inch infotainment display.

The new RWD uses the same battery pack as the Premium RWD but delivers a claimed 572km driving range on the WLTP test cycle, an increase of 52km. Tesla claims a 0-100km/h sprint time of 6.2 seconds.

Tesla Australia and New Zealand country director Thom Drew said the new model broadens access to Tesla ownership.

"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)."

Across the MY27 range, Tesla has also introduced Powershare vehicle-to-load functionality, allowing owners to power external devices and appliances using the car's battery when paired with a Tesla outlet adapter.

Premium and Performance variants gain a larger 16-inch front touchscreen, a dark interior headliner and a new Zen Grey cabin colour. Premium models can additionally be specified with new 19-inch Dark Nova alloy wheels.

The flagship Model 3 Performance receives a range increase of 29km, taking its WLTP claim to 600km.

Customer deliveries of the new Model 3 RWD are due to begin in mid-to-late October 2026. The aggressive pricing move comes as Tesla faces growing competition from Chinese rivals in Australia's rapidly expanding EV market and follows increased consumer demand for more affordable electric vehicles.

Tesla has also applied updates to the related Model Y range, including vehicle-to-load capability and performance improvements, while reducing the price of the Model Y Performance following a shift in production from Germany to China.

How much does the 2027 Tesla Model 3 cost?
RWD – $45,900
Premium RWD – $54,900
Premium Long Range RWD – $61,900
Performance AWD – $80,900
*Prices exclude on-road costs

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