Tesla Model Y and Model 3 prices reduced again

Pricing for the top-selling Tesla Model 3 and Model Y have been slashed again as the US EV-maker descends into an unofficial price war with the growing number of Chinese EV brands arriving Down Under.

Tesla Australia has trimmed no less than $4000 from the price of the base 2024 Tesla Model 3 RWD, which now starts at $54,900 plus on-road costs, while the Model 3 Long Range AWD has been reduced $64,900 plus ORCs (-$3000).

No changes have been made to the price of the new Model 3 Performance AWD, which continues at $80,900 plus ORCs

However, a huge $5000 has been amputated off the entry-level 2024 Tesla Model Y RWD price, which now stands at just $55,900 – the lowest it has ever been in Australia.

Neither the Model Y Long Range AWD nor the flagship Performance AWD have had their bottom lines altered, but we wouldn’t be surprised if that changes for the mid-range version of the popular mid-size electric SUV, as per its sedan counterpart.

This is the third price reduction for both models in two months and it makes the Model Y almost $10,000 cheaper than it was in March – and a whopping $16,000 more affordable than it was at the end of 2022.

As usual, Tesla hasn’t provided a reason for its latest round of hefty price cutting, but the discounts have received mixed responses from existing Tesla owners and fans, some of whom have praised the moves in the name of accessibility.

However, others are crying out in pain due to the inevitably lower resale values of their vehicles on the used car market and/or lamenting missing out on savings of up to $5000.

“Not so great for us current owners looking to sell. Thank you Tesla for screwing your own second-hand market,” said a member of the Tesla Model 3 & Y Australia Facebook group.

“Can’t believe I spent $80k for the same one and half year ago,” one owner commented in the WA Tesla Owner’s Club.

“Awesome, my car will be completely worthless when my lease is up. Last Tesla I will ever buy,” said another.

On the other side of the coin, one commenter said: “Bring it on! Elon’s aim was always to make EVs affordable to the masses.

“Lithium (and battery) prices have fallen dramatically. I would save far more now buying new at a lower price than the little bit of resale that my car has lost because of lower new prices.”

One owner drew historical parallels with innovations like DVD players and how they cost hundreds of dollars when first released, before tumbling in price as the technology was scaled up.

“This is what happens to every new technology… It’s a great thing. We want EVs to be accessible to everyone,” they said.

In terms of the competition, these latest discounts mean both the Model 3 and Model Y extend their price advantage over mainstream EV rivals like the Hyundai IONIQ 6 (from $65,000), Kia EV6 ($72,590), Toyota bZ4X ($66,000) and Subaru Solterra ($69,990), as well as close the gap between themselves and Chinese competitors such as the BYD Seal (from $49,888) and Atto3 ($48,011).

How much does the 2024 Tesla Model 3 cost?
Rear-Wheel Drive – $54,900 (-$4000)
Long Range AWD – $64,900 (-$3000)
Performance AWD – $80,900
* Prices exclude on-road costs

How much does the 2024 Tesla Model Y cost?
Rear-Wheel Drive – $55,900 (-$5000)
Long Range AWD – $69,900
Performance AWD – $82,900
* Prices exclude on-road costs

For everything you auto know about EVs, listen to carsales' Watts Under the Bonnet: the electric car podcast

Join the conversation at our Facebook page
Or email us at editor@carsales.com.au