BMW IX2 vs Tesla Model Y

What's the difference?

The second-generation BMW X2 is leagues better than the car it replaces. It now sits nicely in BMW's line-up and offers genuinely tempting electric variants.

This isn't an affordable car by any means but next to rivals from Mercedes-Benz and Volvo, the well-equipped iX2 xDrive30 feels a complete package.

Similarly, the entry-level xDrive20i petrol is a very compelling choice with a comfortable ride and sporty drive.

We'd skip the contrived M35i unless your heart is set on going quickly in a straight line. With the thinking cap on, it's also hard to make a case for the X2 over the objectively better (and more affordable) X1. Then there's the more spacious, powerful, efficient and cheaper Tesla Model Y.

That's not really the point of this car, though. It'll never sell in as many numbers as the X1. Those who love its fastback styling will be pleasantly surprised by the new X2. It does what it says on the tin, marrying the BMW badge with a sporty drive and daring style.

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

Completely putting aside the Elon Musk factor, there’s no question the Model Y was in need of an update to keep it fresh and attractive to buyers. On a purely automotive level, the changes they’ve made have been almost universally positive.

Tesla has had to adopt the traditional car company plan, which is out of character, but the new look and tweaks to the ride and specifications make it feel fresh, new and better - which is exactly what the brand needs to continue to grow its market and win back those who have started to look elsewhere.

Whether that’s enough in the face of both the Musk element, slowing EV market and increased rivals - especially those from China - remains to be seen. But if Tesla sales remain in decline, at least it won’t be for a lack of trying to make the Model Y better.

The entire point of the BMW X2 is to grab attention and promote conversation. The X2's new-found success comes mainly from bigger proportions - it's grown 194mm over its predecessor and 54mm longer than X1.

It's 64mm taller and sits on tracks that have been pumped by 21mm. All the changes are built into the latest iteration of BMW/Mini's transverse UKL2 platform.

The result is presence and swagger on the road for the X2. Even the base car grabs attention, while electric iX2 variants get unique closed-off grilles and a different front bumper treatment.

It's the M35i thats most eye-catching, though. A jutting lower spoiler and butch stance highlighted by horizontal kidney grille slats and quad exhaust tips. Our test car was finished with massive (and optional) 21-inch alloy wheels.

As successful as the whole package is, there are fussy elements: the boxy rear end, awkward spoiler and peculiar tail-lights. From some very specific angles there's even a hint of SsangYong Actyon to the proportions.

The iX2 and X2 aren't made to appease everyone, though, so you don't have to love it.

Inside is a different story with elegant simplicity the X2's remit. It's much like an X1 in layout with crisply integrated curved screens running the latest iDrive 'OS9'.

Apple CarPlay was faultless (wireless Android Auto is also included) yet connected navigation makes it easy to rely on BMW's in-house features.

You get 90 days free use of BMW Digital Premium, which includes the ability to download games and apps as well as more advanced connected navigation. After the trial, you'll need to pay monthly ($9.99) or annually ($109) for the services.

The X2's door pulls and handles are particularly nice to interact with, blending visual lightness with reassuring sturdiness.

Tesla’s original game plan was to focus on software updates to keep its cars fresh and appealing, rather than the traditional facelifts and specification tweaks that other car companies use. But, in what should probably not be a surprise, it turns out the rest of the car industry hasn’t been doing mid-cycle facelifts and updates for every other car for no reason - it did them because they worked.

To that end, this ‘new’ Model Y isn’t all-new, but rather the existing platform with refreshed styling. It takes Tesla’s latest design cues taken from the Cybertruck and Cybercab concept, with a new-look front end that is dominated by this LED lighting that runs across the entire width and wraps around the corners into the headlights.

There’s a new, flatter bumper, which takes styling inspiration from the Cybertruck but the company claims it’s also more aerodynamic. While at the rear there’s been an equally extensive redesign, with new lighting and tailgate. Tesla claims the new rear light bar that runs the width of the car is one of the longest of its kind in the industry.

I’ll leave it to each individual reader to decide whether they like the look of the 2025 Model Y, but objectively speaking it certainly looks different enough from its predecessor that it could entice existing owners to upgrade or attract new buyers.

Inside the changes are less noticeable, with some subtle but significant tweaks. Visually the biggest change is a new wrap-around ambient light strip that runs from door to door across the front of the dashboard.

But the rest of the layout is largely what was there before, with one notable exception. Tesla has taken its ‘minimalist’ design to the next level and removed the gear selector stalk on the right-hand side of the steering column. Instead you need to use the central touchscreen to get the Model Y moving.

To be candid, I don’t like this, it makes for a less convenient, less tactile and less initiative way to change gears, while also making the central screen even busier. Aesthetically, with the left-hand indicator stalk still there, it makes an asymmetrical design element in an otherwise symmetrical cabin. Which is where it starts to feel less like a design choice and more like a cost saving decision.

In fact, despite the good quality materials used throughout the cabin and good build quality, personally I find this almost-buttonless, so-called minimalist cabin just looks and feels cheap with so little in the way of details and design flourishes. Especially against the wave of incoming similar-sized and sometimes cheaper Chinese electric SUV rivals, that either look very similar (Deepal S07) or have similar technology and add some more design flair (BYD Sealion 7).

One design element of note is the lack of any Tesla badging on the front. There’s no ‘Tesla’ or even a ‘T’ badge, which is in keeping with the Cybertruck design but is another meaningful change from the previous Model Y.

Despite the X2 living dangerously in the style department, it hasn't sacrificed cabin practicality – at least in the front seat.

A vertical wireless charging pad holds a phone in like a kid on a rollercoaster (important, as you'll read later, because the X2 range has some serious back-road talent) with nearby USB-C plugs for additional charge.

The door bins easily fit a one-litre camping bottle, there's good storage for small bags beneath the floating armrest (which has a very small cubby for keys or mints) and a sizeable glove box.

As you'd expect from a German-built BMW (all X2s hail from Regensburg) build quality is excellent... save for the flimsy indicator stalks. The latest oblong engage with a limp click that's a far cry from the damped thump of older BMWs, such as the E90 3 Series.

The cabin materials are pleasing to touch with quality stitching and soft padding on heavy touch areas. Geometrically patterned trim inserts add some cabin flare and look sturdy as well. 

The X2 and iX2's back seat is not as good as the BMW X1's – none of the proverbial thanks, Sherlock.

Under the sloping roof headroom will be acceptable for 175cm adults and knee room is passable. Despite sharing underpinnings between electric and combustion variants there's minimal spatial compromise.

There are ISOFIX ports and top tether anchors for all seating positions. Vents are mounted in the centre console and there is a fold-out armrest with cup holders. Doors open relatively wide for a 'coupe' as well. 

Of some concern is the X2's narrow bench; the body-work sculpted appearance of the coupe tail results in lots of shoulder room intrusion. To put it in simple terms, it's best capped at four occupants.

The boot is at least very generous, offering between 525L (iX2) and 560L (X2) of VDA space.

The load bay is long and there is no load lip to lift items over. Seats fold in a 40:20:40 configuration, growing capacity up to 1400L.

Neither the X2 or iX2 is fitted with a spare tyre, so its mobility kits for X2 owners.

From a space perspective, the Model Y offers good room front and rear for an SUV of this size. The addition of the rear heated seats and small touchscreen that can support two Bluetooth headphones is very nice. 

There’s plenty of small item storage thanks to a large centre console between the front seats, with space for two wireless smartphone charging pads, two cups or bottles and a pair of large lidded storage spaces (albeit with only a single USB-C input).

In terms of luggage space, the Model Y does a nice job, thanks to its 117L front boot (or frunk), while at the rear the boot has a claimed 854L of cargo space with underfloor storage. However, that big boot comes at the expense of any sort of spare tyre or even a puncture repair kit. Instead, Tesla offers roadside assistance and brings you a spare wheel and tyre or takes you to a tyre store. Which is fine if you have a flat in an urban area and a Tesla service vehicle can drop off a spare in short order, but if you’re in a regional spot you may be waiting a while for a job that some people can do in 15 minutes or less.

As for the in-car technology, there’s no question that Tesla has created a good infotainment system and it runs quickly on the big, hi-resolution screen. However, once again Tesla’s desire to be different and not conform to the industry norms rears its head.

There’s no Apple CarPlay or Android Auto compatibility, because Tesla wants to only run its system and not deal with third parties. And, yes, you can still pair your phone and get very similar functionality, but it is not the same functionality and seems like a compromise for customers.

The Model Y still has plenty of the ‘Easter eggs’ that are a much-talked about part of Tesla lore. And honestly, they’re fine, a nice little bonus, but the truth is, like so many other car ‘surprise and delight’ features, they don’t add any meaningful long-term value to the ownership or user experience. I used to get excited by them when I first drove Teslas, but within a few days you tend to forget about them.

On a positive note, the Tesla App is a great feature, allowing you to keep in contact with your car, and access cameras and other features remotely, while also using your phone as a key. Which is good, because otherwise you have to use a key card, which allows keyless entry but the card has to be pulled out of your pocket and placed on the wireless phone charging pads in order for the car to start, which just seems unnecessarily complex.

Of course, one of the most important elements for any car’s sales success is its price and the value it offers customers. That’s why this is one of the (non-political) automotive reasons behind Tesla’s sales decline. Put simply, the American brand has more rivals now, particularly those from China that are undercutting it.

The list of cheaper electric SUVs now includes the BYD Atto 3 and Sealion 7, Deepal S07, Kia EV3 and EV5, Geely EX5, Leapmotor C10, XPeng X6 and Zeekr X. With customers having more choice and overall demand for EVs starting to plateau, Tesla will need to fight harder for each and every sale.

Tesla repeatedly cut the cost of the old Model Y, reaching as low as $55,900, but this new version starts at $58,900 for the RWD variant and $68,900 for the Long Range AWD we drove.

Some of the key specification highlights for this updated Model Y include new heated and ventilated front seats, improved heated rear seats, an 8.0-inch infotainment screen in the rear, ambient lighting, acoustic glass, pixel-by-pixel headlights and a new hands-free tailgate that can open on approach.

The elephant in the room is re-sale value, with Tesla's repeated price cuts impacting the used car market and therefore the value it offers you. Tesla Australia has indicated that the multiple price cuts that impacted the previous model in its later years are a thing of the past, but a discount or sale is always a helpful way to drive sales in troubled times.

BMW's internal combustion engines are responsive and slick in the X2, while the iX2's well-calibrated electric powertrains deliver pleasingly instant pick-up.

The range kicks off with a heavily revised version of BMW's all-aluminium 'B48' 2.0-litre four-cylinder in xDrive20i tune. It produces 150kW and 300Nm, enough to hit 100km/h in 7.4 seconds from rest.

Like the xDrive20i, the M35i employs a seven-speed dual-clutch transmission driving all four wheels.

Australian M35is are more powerful than European models, developing 233kW and 400Nm for a 0-100km/h sprint in 5.4 seconds. A freer-flowing exhaust is augmented with active sounds for a fruity (if synthetic) note.

BMW offers a pair of electric powertrains with the 150kW front-drive eDrive20 and twin-motor 230kW/494Nm iX2 xDrive30.

We only sampled the more powerful one which features Hans Zimmer-composed sound scapes and an impressive turn of pace, hitting 100km/h in 5.6 seconds (claimed).

It is limited to a 180km/h top speed which may pose an issue on German Autobahns but is no trouble in Australia.

For all the difficulties Tesla has been suffering lately, and amid all the new challengers, one area where the brand remains in a strong position is its powertrains and battery technology. It is still among the best in the business, and should be the reason you buy a Model Y more than its ‘Easter eggs’ or buttonless interior.

Tesla is notoriously cagey when it comes to its power and torque figures, but all indications are the motors haven’t been changed. That means the RWD makes 220kW/420Nm, while the Long Range we’re in has a theoretical 331kW/559Nm.

What Tesla has confirmed is the new Model Y is faster, thanks to a software update, with the RWD a full one second faster from 0-100km/h - now taking 5.9 seconds - and the Long Range is two-tenths quicker at 4.8 seconds.

Rated at 7.5L/100km (xDrive20i) and 7.8L/100km (M35i), after a 130km jaunt, the M35i's trip computer showed 9.8L/100km.

Premium 95 RON or higher is required and the fuel tank holds 54 litres.

For the iX2 xDrive30, consumption was above the WLTP rating. We saw 18.2kWh/100km on our hilly country route which would equate to 356km from a charge of the 64.8kWh lithium-ion battery battery.

The 417km WLTP driving range figure is at 15.5kWh/100km, we'd expect to get closer to the rated figures in more typical urban and suburban use cases.

Regenerative braking was quite pronounced (there are four setting: Adaptive, Low, Moderate and High) and on a descent into Hobart the xDrive30 managed to boost charge levels from 27 to 29 per cent.

As for regular charging, the iX2 will take DC electricity at 130kW, meaning 29 minutes from 10 to 80 per cent. That interval allows you to roam around 290km between charging stops on a long run.

One great aspect of both iX2 variants are their fast 22kW AC charging capability. It means the iX2 can go from flat-full in under four hours, rather than eight hours on an 11kW wallbox.

Though most owners won't have access to three-phase electricity, this suits public charging – such as at shopping centres or destinations – very well.

Another boon is BMW's inclusion of both Mode 2 and Mode 3 charging cables and a 12-month ChargeFox subscription.

Home wallbox installation isn't included in the deal (Lexus offers this with its UX300e) though BMW does offer the service at a cost for those who want it.

While it may not be more powerful, Tesla has extended the range on both the RWD and Long Range.

The RWD has been stretched to 466km, an improvement of 11km, and the Long Range lives up to its name with a 551km range - an 18km increase over the old model.

In the real-world though, we noticed quite a dramatic decrease in battery percentage on relatively limited urban driving, so much so we’d need a longer evaluation period to confirm whether you could consistently get more than 500km from a single charge. Even working from home, and driving a second car during the week we had the Model Y, I was on course to have to recharge within a seven-day period.

When you do need to recharge, Tesla operates its own Supercharging network, so in addition to being able to use the growing number of public chargers, you can probably find one of Tesla’s 110 Superchargers near you.

Charging is nice and easy too. You can upload your credit card to the car so you only need to plug in and it will automatically start replenishing the batteries.

The previous-generation X2 always felt a bit more Audi or Volkswagen than BMW in the way it went down a road.

This latest iteration has a secure, dynamic balance more in-keeping with the blue-and-white roundel and is far more impressive than its predecessor.

We spent our first leg in the performance-oriented M35i. The punchy engine, front-biased AWD and slick transmission felt just right in the sporty small SUV.

It sits 15mm lower than the other variants on differently tuned springs and adaptive dampers.

The M35i holds onto the tarmac like a limpet with minimal body roll at very high limits partly thanks to the efficiency-oriented 245/35R21 Continental Eco Contact 6 Q tyres.

Yet this comes at the cost of adjustability. With such tight rebound damping in Sport and Sport Plus modes, the M35i's body is too tied down. Even in Comfort, the M35i hopped and fidgeted over Tasmania's broken tarmac, a trait not aided by the 21-inch alloys.

We would have preferred more build-up in the steering weight, too, given the sporting intentions. That chubby wheel rim does its best to remove any sensation of feedback, too.

BMW's iDrive is mostly fantastic except when it comes to changing drive modes, which you need to do fairly regularly in the M35i.

More than just normal – or Personal here – there's configurable Sport and Efficiency modes. There's also Digital Art and other less useful options.

Thankfully, the xDrive20 is much sweeter. Even optioned up with the 20-inch alloy wheels the ride is a lot more agreeable and well-suited to Tasmania's lumpy roads.

All the damper modes were usable with Sport providing welcome extra support without being too strict. Turning into corners felt more natural in the xDrive20 thanks to a bit more body roll which helps communicate grip levels.

The xDrive20i did feel low on grunt after the M35i and iX2 xDrive30 but that was only in a direct comparison - grunt levels were plenty once accustomed. We did miss the M35i's front limited-slip differential on loose surfaces, but it wasn't a deal breaker.

Seeing that the iX2 xDrive30's kerb weight was 325kg higher than the M35i (2020kg) set alarm bells going initially. That's a lot of extra weight for a 'small SUV' to be carrying around, and is beyond a Tesla Model Y Long Range (1979kg).

The iX2 uses the same kinematics and suspension components as the petrol cars but in completely retuned states. Encouragingly, the result is rather excellent.

You do notices the weight when pushing through patchily surfaced corners. The iX2 bobbles and hops occasionally as you approach the damper's limits, but to their credit they never gave up.

That light steering – which is frustrating in the M35i – aids to disguise the xDrive30's extra mass, too. As all X2's are front-biased AWD models, they never quite reach the dynamic heights of BMW's Cluster Architecture models.

Still, grunt is prodigious and, although it's officially slower than the M35i, the xDrive30's rolling response is predictably excellent. BMW has done a great job calibrating the regenerative braking, too.

I found Moderate was my preference, and because the brake pedal blends caliper and regenerative forces you lose precious little range from not having it jacked all the way up.

The iX2 is quiet inside, too. There's almost no wind intrusion and tyre roar is kept to a bare minimum inside, especially impressive given that the M35i sends quite some road noise into the cabin.

Returning through Hobart's outer suburbs, we notice some shortcomings. The iX2's high bonnet, low-set seating position and letterbox rear glass with protruding rear lip spoiler mean visibility is compromised. The X1 doesn't suffer from such issues.

That's the cost of visual flare and the excellent 360-degree camera and head-up display help to alleviate guesswork and keep eyes on the road.

The M35i didn't feel the most complete on the road. If you're chasing a sporty coupe statement at this kind of price, the BMW 230i coupe is a great driver's car.

Instead, you're better to spend money on either the xDrive20i or iX2 xDrive30 with some choice options and enjoy a slick coupe SUV driving experience.

One of the most significant mechanical changes for this new Model Y is retuned suspension. The previous Model Y was criticised for its uncomfortable ride, especially in the rears, and Tesla has acted to change that. 

The ride is more comfortable but still on the firm side as it needs to control the weight of all the batteries. Overall the changes have brought a positive impact and helped improve one of the weak points of the Model Y.

Tesla has also added lower rolling resistance tyres and acoustic glass, both of which help refinement and make for a quieter cabin. That was an early problem with the Model S, the amount of road noise and mechanical groans and squeaks that were audible without an engine to mask them. Tesla has worked hard over the years to make a much more refined and quieter electric vehicle.

From a driving perspective, the Model Y is nice without offering anything class-leading or particularly stand-out. Tesla claims the new tyres help improve handling, but there's no real evidence of that from behind the wheel.

In fact, the Model Y doesn't really have any element of the driving experience that stands out amongst its newer rivals. The motors offer good, effortless performance, but the driving character - the steering, the chassis handling - just lacks any above-average quality.

One area where Tesla has caught up to some of its EV rivals is adding a different level of regenrative braking, with a relaxed setting that allows for a more conventional two-pedal driving experience than the standard regen, which is quite strong.

Still, it's hard to give Tesla any more points for its Driving score because it simply feels very much average for the current class of EV SUVs.

Safety is another area where Tesla has some standout features. As this is an updated, rather than an all-new model, it has the same crash structure as the 2022 Model Y ANCAP tested and awarded five stars.

It gets all the basics you expect, such as seven airbags for full occupant protection, autonomous emergency braking (AEB), lane departure warning and so on. But there’s some extra elements worth mentioning.

And we need to start with Tesla’s much talked about ‘Autopilot’ - which isn’t the Full Self Driving System that’s offered in America. Instead, it’s a very fancy sounding name for the same sort of adaptive cruise control and lane keeping assist most brands offer. We had some significant issues with this system during our week of testing, with the car repeatedly slowing dramatically when the Autopilot was engaged, despite no obvious reason to do so.

Another issue with the Autopilot is the specific ‘Autosteer’ function, which is clearly listed as in ‘Beta’ form, which means it’s not in its final, production-ready form. I don’t believe customers should be beta testing anything for carmakers, either it’s ready for us to use or it isn’t. Tesla is the only car I’ve ever driven that openly admits it is offering a not-fully-tested system and it simply doesn’t make sense to me that they get away with it.

But, as is a theme here, for every questionable Tesla element there is a counter element that’s positive. In terms of safety it’s the Sentry Mode, which is a great system that allows you to record movement near the car in case of threat of theft or damage by automatically turning on the external cameras if someone approaches the car. You can check in real-time from the Tesla app too, so it adds a layer of functionality and peace-of-mind that few others can match.

Similarly, another handy safety feature is the in-built dashcam, that uses the forward facing safety camera to record video. It can be programmed to activate on a specific command, such as beeping the horn, so you can capture any incident and get evidence to help with an insurance or dangerous driving incident.

Since 2022, BMW has backed all of its cars with a five-year/unlimited kilometre warranty.

You’ll need to service the iX2 ands X2 based on condition, rather than kilometres traveled. The multimedia system will prompt you when it's time to visit a workshop. 

You can pay upfront for service plans with BMW: a five-year servicing package will cost you $3171 for the petrol X2s, while the iX2 is $2186 for six years.

Tesla has a relatively short warranty for the Model Y, at least by modern standard, at just four years and 80,000km. However the battery and drive units are covered for eight years, so you do get more peace of mind that any battery issues will be resolved.

However, there are different mileages for the RWD and Long Range models, and Tesla says the batteries only need to retain 70 per cent of their performance to be within their limits.

Servicing is another non-traditional area for Tesla. The company doesn't offer fixed-service intervals, but rather the car will alert you when it needs a service. BMW and Mini also do this.

Naturally, there are less lubricants and other consumables to maintain as you’d find on a petrol-powered SUV, but there are still parts like brake fluids and air filters that need to be looked at by a technician.