Tesla has slashed prices of the Model Y and Model 3 in Australia, marking the third price reduction down under for the EVs in the last two months.
According to an update to the Design Studio for Australia on Tuesday morning, the entry-level Model Y Rear-Wheel Drive (RWD) has seen the most significant price drop of AUD$5,000 (C$4,530), now starting at AUD$55,900 (C$50,700). With the previous price reductions, the Model Y RWD has seen its price trimmed by a total of AUD$9,500 (C$8,600) over the past two months.
Similarly, the price for the Model 3 RWD has been dropped by AUD$4,000 (C$3,630), making its new starting price AUD$54,900 (C$49,840).
The Model 3 Long Range All-Wheel Drive (AWD) has also benefited from a price cut, but the smallest of the bunch, now starting at AUD$64,900 (C$58,900), a AUD$3,000 (C$2,720) reduction.
Meanwhile, the Model Y Long Range AWD and the Performance versions of both the Model 3 and Model Y remain unchanged, with starting prices of AUD$69,900 and AUD$82,900 respectively for the Model Y, and $80,900 for the Model 3.
The latest price cuts position the Model Y RWD as more affordable than a top-of-the-range Toyota RAV4 Hybrid, reports Drive. The reductions also make the Model Y and Model 3 more competitive against traditional internal combustion engine (ICE) vehicles, as well as other EVs.
Tesla’s price cuts come in response to increasing competition in the Australian EV market. Other manufacturers such as GWM Ora, MG, Polestar, Renault, and Nissan have also reduced prices to compete with Tesla’s dominance.
Despite the competitive pressure, Tesla continues to lead the market, with 8,001 Model Ys and 6,885 Model 3s sold between January and April 2024. This performance far outstrips its nearest competitors, BYD Atto 3 and Seal, which reported 2,638 and 2,384 sales respectively.
