2024 Tesla Model Y and Model 3 prices slashed: Electric car war heats up in Australia as Hyundai Ioniq 5, Toyota bZ4X and BYD Seal rivals get cheaper

Tesla has slashed the price of its popular Model 3 sedan and Model Y SUV ranges in Australia.

It’s the second time in just a few weeks the carmaker has sliced the price of its high-selling models. It is good news for new customers but Australians who have just received their cars might not feel the same.

Since the start of April the best-selling Model Y is now between $4500 and $8500 cheaper depending on the variant.

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The base Model Y rear-wheel drive now costs $60,900 (before on-road costs), which is $4500 cheaper than at the end of March.

The Long Range and Performance version has had a massive $8500 price cut. They now start at $69,900 and $82,900 respectively.

Those recent price cuts make the Model Y comfortably cheaper than key rivals such as the Hyundai Ioniq 5 and the Toyota bZ4X, which start at $65,000 and $66,000 respectively.

The Model Y also trumps its competitors in other vital areas. It has one of the longest driving ranges with the rear-wheel-drive variants claiming 455km of range and the Long Range version can go up to 533km between charges.

Tesla customers have access to the most comprehensive network of superchargers in the country, which makes long distance travel easier.

The Tesla Model Y was the best selling electric car in the country before the price cuts.

The updated Model 3 was only launched in January and is now between $3000 and $4000 more affordable since the start of April.

A base Model 3 rear-wheel drive starts at $58,900 (down $3000) and the long-range version is priced from $67,900 (down $4000).

The Model 3 is still pricier than its newest rival, the BYD Seal that starts at $49,888 for the rear-wheel-drive version and rises to $58,798 for the Long Range and $68,748 for the potent Performance variant.

Long Range Model 3s are some of the longest legged electric cars currently on sale with up to 629km of claimed range. 

Base rear-wheel-drive versions aren’t too shabby either, they can go up to 513km before needing to be plugged in.

The updated Tesla Model 3 only went on sale in January.

Tesla is facing increasing competition in Australia and globally from new and legacy carmakers who are pushing into the EV market.

Despite this Tesla sales are up more than 22 per cent this year in Australia. This is driven by close to 7000 Model Y sales through the first three months of this year. The Model 3 isn’t far behind with just under 6000 sales through March. Even with just two models on sale, Tesla is the ninth best-selling brand in the country in 2024.

The American maker has the scale and margins in its cars to react to stiff competition by lowering prices.

Tesla is currently quoting delivery times between April and June for all new orders.