Is it affordable enough? 2025 Tesla Model Y pricing and specs locked in with surprisingly small price hike as embattled electric car brand fights off XPeng G6, Leapmotor C10 and Geely EX5

Tesla has announced pricing and features for its post-launch mainstream variants of the updated Model Y.

Now starting from $58,900 before on-roads for a base Rear Wheel Drive, the updated Model Y is $4500 cheaper than the limited Launch Edition it replaces and $3000 more than the best-selling pre-update Rear Wheel Drive.

Meanwhile, the mid-spec Long Range AWD variant, which now starts from $68,900 before on-roads, is not only $4500 more affordable than its Launch Edition version but also $1000 more affordable than the pre-update version.

The Performance model (previously $82,900) has not yet been revealed, and will presumably join the new Model Y line-up at a later date.

Like the Model 3 update which preceded it, the new Model Y is a significantly different car, featuring “Cybertruck-inspired” styling to separate it from its sedan sibling. Inside, it also receives a major cabin re-work, with upgraded seats and materials, as well as a major increase in sound deadening.

The most important tweaks are to the Model Y’s range and motors, with the base Rear Wheel Drive now capable of travelling 466km (+11km) on the WLTP cycle, while the Long Range AWD can now travel 551km (+18km) to the same measure. The Rear Wheel drive can now sprint from 0-100km a full second faster, now 5.9 seconds, while the Long Range AWD does the sprint 0.2 seconds faster than before.

While Tesla doesn’t officially release power figures for its drive units, available data shows the Rear Wheel Drive now producing 255kW (up from 220kW) while the Long Range AWD maintains the same 378kW output.

Other new features available on even the base Rear Wheel Drive include heated and cooled front seats, power functions for the rear seats with flat folding functionality, a 8.0-inch rear multimedia screen with support for two bluetooth headsets, RGB ambient lighting, a hands-free powered tailgate, adaptive pixel LED headlights with automatic high beam control and a “self-cleaning” front camera.

There are also new wheel designs, either 19-inch or 20-inch options clad in new tyres designed to improve refinement and grip, according to the brand.

Structurally, Tesla says the new Model Y’s aerodynamics, chassis and drivetrain improvements result in 18km of extra driving range, while an “overhaul” of the Model Y’s ride and handling hardware is said to result in a 22 per cent reduction in road noise, as well as a 20 per cent reduction in impact noise and wind noise.

Additionally, thanks to feedback from the previous model, the new Model Y also has revised suspension which is designed to be more comfortable. The brand has also responded to feedback from the Model 3’s update, and has retained the left-hand indicator stalk, although gear selection must now be done through the touchscreen.

Like the Model 3, the new Model Y also scores an increase in acoustic glass, although in addition the Model Y gets a silver layer which helps to resist heat and ultra-violet light from entering the cabin.

For safety, Tesla has added a new front blind spot camera and a fully fledged blind spot monitoring system with indicators in the front doors, rather than the abstract surround view which was viewed via the central screen previously.

The key feature which stays the same is the Model Y’s 15.4-inch central control panel and “Hardware 4.0” system, although the Rear Wheel Drive loses four speakers (down to nine) while the Long Range AWD scores an additional two speakers (now 16).

The very mild price increases will see the Model Y move further up the pecking order, now far from the most affordable electric mid-size SUV in the market.

Its most direct rival from China, the XPeng G6, starts from $54,800 offering slightly less power, while even Kia’s EV5 is more affordable, starting from $56,770.

The most price-conscious buyers could be drawn to the significantly more affordable Leapmotor C10 (from $43,888) or Geely EX5, which is now the most affordable mid-size electric car, starting from $40,990.

Tesla is no doubt hoping this new Model Y will help arrest its sales slide in Australia, with the most recent figures having it drop 65.6 per cent year-to-date. While it is obvious some buyers were holding off for these mainline Model Y variants to arrive, there is no doubt also other factors at play, like the increase in competition and the increasingly controversial political activities of the brand’s CEO Elon Musk.

As a result, there is now industry chatter that the brand could take the previously unforseen step of introducing a new and even lower-grade variant for each of its models, as it has already done in Mexico with a basic Model 3 featuring cloth seats without cooling or heating, and no rear screen.

The brand is even once again talking about expanding its model range with a suggestion that its Cybertruck might be able to pass Australian Design Rules with relatively minor modifications, although to what extent the brand has explored this avenue remains to be seen.