BMW X3 vs Tesla Model Y

What's the difference?

If a BMW X3 is for you, then we have no quarrels with that. It’s a better all-round vehicle than the one it replaces and represents better value. And even though BMW mandates a hybrid driveline, there are still some significant choices within that framework.

By all means buy the M50 if you crave the rush of acceleration that almost 300kW can provide. And if efficiency is your altar of choice, then the plug-in 30e makes a lot of sense, too.

But even if you can afford either of those two more expensive variants, whatever you do, don’t dismiss the entry-level 20 model. At least drive it alongside the others and then make a decision based on all the facts, and not the assumption that entry-level equals the car you afford rather than the car you want.

It might be cheaper, but there’s absolutely no doubt that the 20 model is the one that shines and arguably makes the most of the opportunities BMW’s latest tech offers.

Sometimes less really is more.

Note: CarsGuide attended this event as a guest of the manufacturer, with 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.

It might be badged an X3, but this is no small vehicle. In fact, it’s bigger than the original BMW X5 (which set the tone for this entire market segment) with a length of 4755mm (4667mm for the first X5) and a width of 1920mm (1872mm). That said, it’s 25mm lower than the outgoing X3 in a move to emphasise its sportiness. Shorter it may be, but it’s also 16mm wider on the front track and 45mm wider on the rear than the outgoing model.

BMWs latest styling cues also appear in the new car, including the large, split-kidney grille that, for Australian-delivered cars, is also lit around its edges. The short overhangs that characterised the original X5 (and soon characterised this whole BMW genre) remain, and the T-graphic LED tail-lights round out the stylistic touches.

The other thing we noticed (and we’ve seen it on other cars recently) is a panoramic sunroof that doesn’t actually open.

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.

Cabin space is plentiful in the X3 with loads of room in the front, possibly thanks to the dashboard that is pulled back from you with only the twin screens and steering column offering themselves up to the driver. Even the air-vents are somewhat hidden. There’s good vision out and the seats themselves are lovely. The step into the cabin feels to be at just the right height, too; not too high, not too low.

Rear seating is good, too, although the X3 will always be better as a four seater than five thanks to the shape of the rear bench, but the glass roof opens the space up and there’s plenty of charging points and storage nooks. The sun blinds on the rear-side windows of the more expensive versions should be standard kit on every car sold in Australia.

We’ll take exception to the new gear-selector which doesn’t have a defined Park position and instead relies on applying the park-brake to engage Park. But the ambient light and contrasting cabin colours are a bit of a breath of fresh air.

There are levers in the cargo area to quickly fold the rear seats (60:40) at which point luggage space jumps from 570 litres in the mild hybrid cars to 1700 litres. The battery-pack of the 30e model means that luggage space starts at 460 litres and can be expanded to 1600 litres.

The latest version of BMW’s sometimes controversial iDrive operating system is simpler and easier to use than before and supported by a new operating system, but there’s still some familiarisation necessary. One improvement has been the addition of QuickSelect which works somewhat like the old favourites button system and gets around the need to drill into menus to access the functions you want.

A head-up display is a terrific addition, although where some displays are more tolerant of polarised sunglasses, the HUD in the BMW didn’t like mine and went dark at the most inconvenient angles.

None of the X3 variants feature a spare tyre of any sort. The 19-inch tyres on the base grade are run-flats, while everything else gets a repair kit for roadside emergencies.

If you want to tow, the good news is that all X3 variants can do so. But you will need to purchase the $2200 towing package which enables the X3 to haul a trailer weighing up to 2000kg with a maximum tow-ball down-weight of 200kg.

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.

Hybrid tech across the board is the key phrase here, with the base-model 20 xDrive fitted with a mild hybrid electric motor and battery pack that works in conjunction with the 2.0-litre, turbocharged petrol four-cylinder engine. Power is 140kW and torque 310Nm. Like most mild hybrids, the electric motor offers power regeneration during braking, a mellow (by EV standards) kick in the pants during take-off and acceleration and also acts as the car’s starter motor.

The performance flagship, the M50 xDrive taps into the same technical philosophy with a mild hybrid augmenting the turbocharged six-cylinder inline petrol engine. In this case, however, peak power is a hefty 293kW and torque maxes out at 580Nm.

The most technically adventurous X3 is the 30e xDrive which uses plug-in hybrid tech to offer a claimed 91km of electric driving, about twice that offered by the original X3 PHEV it replaces. When the same 2.0-litre four-cylinder petrol as fitted to the 20 xDrive, and the electric motor are humming along together, there’s 220kW of power and 450Nm for the taking. The PHEV X3 can run in purely electric mode at up to a claimed 140km/h.

All variants use BMW’s familiar eight-speed automatic transmission and in each case, drive is sent to all four wheels on a permanent basis. Interestingly, the 30e and M50 versions package their electric motor as part of the engine-transmission combination. The 20, meanwhile, places its electric motor externally, as part of the drive-belt rotating assembly.

The M50 model has an M button that unleashes the full performance with one touch, and features an electronically locking rear differential in the interests of high-speed turn-in.

Adaptive suspension that varies the degree of damping is also part of the package on each X3 variant.

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.

As you might expect, the PHEV 30e model is the efficiency superstar of the X3 line-up with an official combined test figure of just 1.6 litres per 100km and 38 grams of CO2 per kilometre. The four-cylinder 20 xDrive is not bad for its size at 7.5L/100km (and 171g), yet the bruising six-cylinder M50 version with all that performance is not too far behind with an official figure of 8.2L/100km (187g).

The 30e PHEV features a selectable battery-saving mode as well as the option of forcing EV-only running. It features a 19.7kWh battery and BMW claims it can charge using a three-phase, 11kW socket from empty to full in two hours, 15 minutes. It does not make use of fast-chargers.

Exactly how far you’ll travel in the PHEV model will depend hugely on how and where you drive. On long, open road journeys, fuel consumption won’t be much different to the others, but with just a 50-litre fuel tank, it’s range won’t be stellar. But in urban running where the batteries are being recharged for free as you brake, the difference will be significant. Meanwhile, with a 65-litre fuel tank in the mild hybrid grades, the theoretical range (based on the official fuel number) is 865km and 765km for the 20 and M50 respectively.

While BMW recommends premium fuel for maximum efficiency, it also says that each X3 variant will not be harmed by the use of standard ULP if that’s all you can get hold of.

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.

Big heavy SUVS like this one haven’t always been too dainty on their feet. The extra bulk and height mean suspension has to be firmer, the big wheels and subsequent loss of tyre sidewall depth plays against ride quality and before you know it, the compromises have piled up and the driving experience has gone to hell.

This time, however, BMW’s claim that the X3 was designed from the start as an SUV and not converted from a sedan platform seems to hold water. There’s an overall greater sense of cohesion in the way the car steers and flows through corners and faster bends. The steering feel and feedback are a big part of that, too, and the whole seems at least as great as its parts.

The M50 is, predictably, a rocket with loads of accessible acceleration and a great noise while you’re enjoying it. That said, the 21-inch wheels and tyres don’t do anything for ride quality, but it remains an entertaining performance car in a familiar, ICE kind of way.

The plug-in is also perky with its 220kW on tap, but it’s less old-school and more techy. And while you can’t pick the point at which ICE hands over to electric and vice-versa, sensitive drivers will absolutely know that there’s a big dollop of electrical assistance when your right foot starts asking the tough questions. It definitely feels more overtly hybrid, though that shouldn’t be any kind of surprise, purely because that’s precisely the case.

Which brings us to the 20 entry-level grade. And while it’s going to be a controversial statement, this emerges as the most cohesive, rounded variant of the new X3. There’s something in the way the fizzy, bubbly (but very smooth) 2.0-litre four-cylinder provides more than enough urge, but never threatens to dominate the dynamics.

With less weight over the front wheels than the M50, and less weight overall than the PHEV, the 20 corners flatter, steers more intuitively and is simply more fun more of the time. Even on the optional 20-inch tyres, it rides better than the others, too, and might even be better again with the standard 19s other than the fact that those are run flats and we didn’t get try them.

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.

BMW’s warranty on the X3 is the company’s usual five-year/unlimited kilometre deal. But in this case, there’s also a six-year/100,000km warranty on the high-voltage battery.

Also typical for BMW is the service interval which is not a set time or distance and instead is determined by how the car has been used. It’s called condition-based servicing and it’s nothing new at BMW.

There’s also capped-price servicing available. For the X3, the five-year/80,000km service package is $2475.

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.