Tesla engineers 'listen to every piece of customer feedback': Surprising changes for 2025 Tesla Model Y detailed as it prepares to take on Kia EV5, Xpeng G6 and BYD Sealion 7

Speaking to CarsGuide at the Everything Electric show in Sydney, Tesla’s Country Director for Australia and New Zealand Thom Drew explained the roll-out plans for the new Model Y as well as some of the changes to the popular EV.

First of all, despite reports of an early sell-out of the initial launch-edition spec, Drew explained there are some long-range versions still remaining for order, and customer deliveries won’t be until May. He is not expecting there to be a gap between the early-adopter limited variants and mainstream versions becoming available to buyers.

“Hopefully, no gap, We’ll get some initial cars coming in April we think and then customer deliveries coming in May,” he said.

In terms of ongoing supply, which has been at times haphazard for Tesla in the past, Drew acknowledged the history but was confident the brand had moved past the days of long delays for buyers.

“We’ve been in that boat before” he said of supply issues “but given we’re a little bit more refined now when it comes to manufacturing vehicles in Shanghai, everything is going really smoothly. We’re not anticipating those delays.”

There are also some surprising changes to the car itself, with Drew stressing the Model Y’s update was more than just the same set of changes applied to the Model 3 in late 2023.

“The engineers and designers were at pains to describe to us that they listen to every piece of customer feedback.

“Obviously to get the vehicle right for that family buyer was really important, so if they’ve done things, maybe experimented a little, it might not have been the best for the sales, so they want to make sure it’s the best car for the target demographic,” he said.

This has led to one of the more controversial changes from the updated Model 3 being reversed, in that the new Model Y features an indicator stalk rather than the Model 3’s wheel buttons.

Other surprising additions include the return of a 'roll' mode to replace the old ‘creep’ mode (as opposed to single pedal drive) which simulates the feel of an automatic transmission.

Drew says this is due to customer feedback as well software improvements which allow this simulated mode to fully use regenerative braking rather than friction brakes to counteract efficiency losses which is one of the reasons the creep mode was previously removed.

Another feature added thanks to feedback is a silver coating for the panoramic sunroof which cuts the amount of light entering the vehicle. Previously, Teslas were notorious for becoming hot inside when parked or driven in Australian summer conditions.

Other popular amendments to the new Y also present on the updated Model 3 include revised suspension to address concerns around a hard ride, as well as a significant increase in sound deadening throughout the cabin with acoustic glass all around which is said to result in a steep increase in refinement.

In terms of spec changes, the Model Y also gets the same seat material upgrade as the Model 3, with heating and cooling for the front two positions, and it also now features an electrified rear folding seat. One thing it won’t get is vehicle-to-load or vehicle-to-grid tech, despite this technology becoming available on the Cybertruck.

Pricing and final spec for the standard rear-wheel drive and long-range are yet to be locked-in for the Australian market, but Drew promises they’ll be even more competitive given the amount of competition, particularly from Chinese automakers. “Watch this space,” he said.

The outgoing Model Y Rear Wheel Drive was priced at $55,900, where the Launch Edition of the new car was priced at $63,400 before it sold-out.

The outgoing Long Range AWD version was priced at $69,900, where the remaining units of the Launch Edition Long Range AWD are priced at $73,400, before on-road costs.

Despite the market shifting significantly, Drew also remained confident the majority of sales of the new Model Y would be directed to the base rear-wheel drive variant when it arrives, and there was still “strong interest” from first-time EV buyers according to the brand, not just a majority of repeat Tesla customers.

Tesla, perhaps for the first time, will face an uphill battle in 2025. The once-dominant EV maker is facing a price-war with many new Chinese automakers, but increasingly must face improved offerings from mainstream players, particularly entrants like Kia’s EV5 and Volkswagen’s imminently-arriving ID.4.

Additionally, Elon Musk has caused controversy for the brand, with some owners vowing to distance themselves from the CEO’s political activities abroad, something the brand’s spokespeople were not willing to comment on. The brand has already posted a huge drop in deliveries for February, down 71.9 per cent year-on-year, although anticipation for the new Model Y may be a significant additional factor in the company’s ailing fortunes.

Whether the EV pioneer can remain in the top spot in 2025 remains to be seen.