Tesla has just made its top-selling vehicle, the Model Y electric SUV, even more affordable – cutting the price by a substantial $4500.
The revised price is for the regular version of the heavily updated 2025 Tesla Model Y that, for the last couple of months, has only been offered as a limited edition Launch Series, brimming with equipment.
With the Launch Series almost sold out, Tesla has taken some equipment out and lowered the price for the hotly anticipated Model Y update, codenamed Juniper.
Pricing for the new model kicks off at $58,900 plus on-road costs for the single-motor Model Y Rear-Wheel Drive (RWD), making it $4500 cheaper than the outgoing Launch Series version.
But it’s worth noting the new 2025 Tesla Model Y has a higher price of entry than the 2024 model it replaces, the $58,900 Model Y RWD now $3000 more than the pre-facelifted version.
For those looking for additional driving range and performance, the Model Y Long Range – which adds a front e-motor for all-wheel drive – is priced from $68,900 plus on-road costs; also a $4500 reduction compared with the Launch Series.
The sharper prices for the regular models – deliveries of which are due late in May or early June – come at the expense of some equipment, the most significant of which is the choice of premium colours.
White has long been the only standard colour for Teslas but with the Launch Series, the EV pioneer made all hues the same price.
With the regular Model Y, the optional colours – Stealth Grey, Quicksilver, Ultra Red and new Glacier Blue – cost between $2300 and $2600 extra.
The core Model Y variants also miss out on puddle lights under the side mirrors, premium bezel around the wireless phone chargers and 20-inch wheels, the latter replaced by smaller 19s.
The interior trim is also a simpler grey flecked pattern instead of vegan suede.
However, the 2025 Model Y does get plenty more features than the 2024 model it replaces.
These include:
• Power-folding rear seats that split 40/20/40
• An 8.0-inch rear infotainment screen
• Ventilated front seats
• Ambient cabin lighting
• Higher-end interior materials
• Perforated leather-look trim
That’s on top of the already generous list of standard gear that comprises a panoramic sunroof (now with a silver-coated layer claimed to reflect seven times more solar energy), power-adjustable steering wheel and front seats, a powered tailgate and a 15.4-inch central infotainment screen that incorporates the instrument cluster.
There are a couple of areas the new 2025 Model Y has gone backwards in terms of equipment, however.
For starters, there’s no longer seat heating for the middle rear seat, with heating limited to outboard seats only.
The RWD also loses the premium audio package; there’s now a nine-speaker sound system with no subwoofer – those wanting a premium system will have to opt for the Long Range and its upgraded 15-speaker system.
Performance has also been improved for the 2025 Model Y. The base Rear-Wheel Drive now does the 0-100km/h sprint in 5.9 seconds – a full second faster than the previous model.
Additionally, efficiency upgrades have slightly increased the WLTP-rated range from 455km to 466km. As before, the RWD gets a lithium-ion phosphate (LFP) battery with a capacity of about 60kWh.
The Model Y Long Range has also seen a performance boost, shaving 0.2 seconds off its 0-100km/h time, now completing the dash in 4.8 seconds.
Those who opt for the Acceleration Boost software update can reduce that time further, dropping it to 4.3 seconds.
Tesla Australia country director Thom Drew said demand for the new Model Y was “really good”.
The company showcased the updated model at the recent Everything Electric show in Sydney.
“We’re in a very happy spot. The response that we had at the event, I think we could easily say it outweighed our expectations,” he said.
“The constant queues that we had, the people crawling all over the cars. It was a really gratifying response to the new product.”
Drew said he’s expecting this new regular model to “translate into a nice uptick in sales”.
However, it’s worth noting the new 2025 Tesla Model Y has a higher price of entry than the 2024 model it replaces. At $58,900 the Model Y RWD is $3000 more than it was last year.
The Model Y Long Range, though, is $1000 cheaper than its 2024 predecessor.
As for the 2025 Tesla Model Y Performance, Tesla has yet to announce any details.
However, if it follows a similar timeline as the Model 3 Performance, we’d expect news on its release in the coming months.
How much does the 2025 Tesla Model Y cost?
Model Y RWD $58,900 (+$3000)
Model Y Long Range AWD $68,900 (-$1000)
Model Y RWD Launch Series $63,400
Model Y Long Range AWD Launch Series $73,400