Tesla Model Y News

Production plans for Tesla’s low-cost Model Y have been delayed again, according to industry sources, with a start date now slated for as late as early 2026.According to Reuters, three sources with knowledge of the matter said production had been pushed back by at least a few months from Tesla’s most recently publicised production date of the first half of this year.The brand is now reportedly offering a range of revised targets from the third quarter to early next year. The reason for the delay is not clear.Two of the sources confirmed that Tesla is aiming to produce 250,000 of the cheaper Model Ys in the United States by next year. Production is also planned for Europe and China, the latter of which being where Australia-bound Teslas are built.Questions around plans for the affordable models, which will also eventually include a stripped-back Model 3, is set to be a key line of inquiry following Tesla’s first quarter earning results on Wednesday.Low-cost Teslas have long been anticipated by customers and investors alike, with plans dating back as far as 2020 when CEO Elon Musk first floated a price tag of $25,000 (A$40,000) for future budget models.The same price tag has since been floated for the incoming, fully-autonomous Cybercab, which is now also delayed.Reuters reported that the new stripped-back Model Y will cost 20 per cent less to produce than the current version, presumably by losing some standard features and carrying a smaller, short-range battery pack. Tesla has previously said a 53kWh unit would replace the current Model Y's 60kWh battery.An updated version of the current Model Y will land in Australian showrooms from next month with a starting price of $58,900 before on-road costs.Positive news couldn’t come any sooner for Tesla, whose stock has fallen by 44 per cent in the US off the back of Musk’s controversial role in the Trump Administration's Department of Government Efficiency (DOGE).Rising competition from Chinese EV brands, such as BYD, has also seen the brand’s small and aging line-up undercut in key overseas markets such as China, Europe and Australia, with Tesla recording its first-ever decline in annual deliveries in the fourth quarter of last year.U.S. President Donald Trump’s huge 145 per cent tariffs on Chinese imports, including vehicle components, are also set to hit a quarter of vehicles Tesla produces in the US, according to Fortune.In Australia, Tesla’s sales to March 2025 were down by nearly 60 per cent compared to the same period last year, with sales of the brand’s best-selling model in Australia (and globally), the Model Y, falling by 54.4 per cent.BYD, meanwhile, has seen its sales in Australia grow by 95.6 per cent over the same period, though largely off the back of its plug-in hybrid Shark 6 ute.Chinese electric car conglomerate Geely has emerged as another threat, with sales of its EX5 electric SUV – which is the cheapest model in its class in Australia – clocking 188 sales in just its first month.

Tesla has underperformed most analysts worst-case scenario, with the EV company reporting a total 323,800 units sold globally in the first three months of 2025.

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

Tesla has secured its first permits required to make its future Cybercab autonomous hailing service real.According to Reuters, Tesla received a transportation charter party carrier permit from the California Public Utilities commission, which allows the brand to operate an app-based rideshare fleet service for pre-arranged trips.This is important, as it is the first step in the brand moving toward offering an autonomous rival to the likes of Uber, with Cybercab rides theoretically ordered via the Tesla app, with Tesla owning and operating the fleet.However, it is noted by multiple outlets that this permit doesn’t authorise the company to operate autonomous rides, and the version given to the brand only allows it to provide rides to employees and not the general public.The company will need to apply for multiple different permits which will allow it to run a public ride-hailing service like Uber, but also one to allow it to run autonomous vehicles like Waymo, which already operates several geofenced robotaxi services in multiple American cities.Controversial Tesla CEO Elon Musk said in January the company planned to have self-driving cars on the road in Texas as early as June of 2025, telling Tesla investors that 2025 will be “the most important year in Tesla’s history.”According to a separate Reuters report, there is nothing in Texas law that would stop Tesla from operating a robotaxi service in the state, so long as the vehicles are registered and insured.The Cybercab was revealed in October of 2024 at a Tesla event titled 'We Robot' with Musk saying the driverless vehicle would enter production “before 2027” alleging that the price will be lower than AU$45,000 for private buyers.Musk pitched the Cybercab as a form of “individualised mass transit” which he claimed would be more affordable per mile than a bus to run. He said buyers would be able to rent their vehicle out when they weren’t using it. Strangely, Musk also added that the powerful computers the Cybercab will need for its autonomous driving functions could also be used by the company to be a part of a cloud computing service while the vehicle is not in use.Strangely for a purpose-built rideshare vehicle, the Cybercab takes the form of a two-door two-seat coupe, the version shown even having supercar-like scissor doors.At the time, the brand also showed a Robovan mini bus which could “carry up to 20 people.”Musk also claimed the current Model 3 and Model Y will eventually be able to support robotic taxi functions via over-the-air updates “wherever regulators will approve it” but has since admitted the 'Hardware 3' computer in current vehicles is not capable of supporting the ‘Full Self Driving’ (FSD) software despite the brand continuing to sell it as a $10,100 option on Australian-delivered vehicles.Tesla sales are down a whopping 71.9 per cent compared to this time last year, a drop likely due to several factors, including a general retraction of the EV market in Australia as well as many buyers waiting for delivery of the updated version of its best-selling Model Y SUV. However, the brand’s chances of recovery to the point where it continues to dominate the EV market are questionable, as Musk’s political activities abroad have polarised potential buyers.In the meantime, the brand has also taken the previously-unprecedented step of releasing an even more basic version of the Model 3 in Mexico (swapping the leather seat trim for cloth, as well as removing the rear screen and heated seats). A recent report suggested Chinese-built Model Ys will undergo a similar de-specification as the brand chases further price-competitiveness with an increasing field of Chinese rivals.

Tesla will attempt to arrest or reverse sliding sales in Australia and across the globe by unveiling a new and cheaper Tesla Model Y that will bring Elon Musk's best selling vehicle closer to its Chinese competitors than ever before, according to new reports.

There are some surprising changes to Tesla's Model Y which reverse some controversial choices made on the Model 3.

Cheaper Tesla Model Ys are on the way.The company is anticipating non-Launch Editions of the updated Model Y to be available soon in Australia after revealing three Long Range All-Wheel Drive variants will be on display at the Everything Electric show in Sydney this weekend.Prices of the non-Launch Edition variants are expected to be more affordable than the current Rear-Wheel Drive and All-Wheel Drive Launch Edition grades, which have been priced at $63,400 and $73,400 (both at before on-road costs), respectively, ahead of deliveries in May.The previous entry-level Tesla Model Y Rear-Wheel Drive started at $55,900, before on-road costs, while the Long Range All-Wheel drive was priced at $69,900, before on-road costs.Non-Launch Edition variants are likely to carry less standard features than the Launch Edition variants in support of their reduced price tags.That means they will likely lose the power tailgate, puddle lights, doorsill plates, Launch Edition badging and complimentary premium paint, along with the acceleration boost feature on the Launch Edition AWD – which is typically a paid software upgrade.Customers will have the opportunity to get up close to the new model, which was imported into Australia specifically for the event. A Cybertruck will also be on display.The brand also confirmed allocations for the cheapest Rear-Wheel Drive Launch Edition variant in Australia have already been exhausted, as was previously speculated by CarsGuide following the removal of the car from its local website.Interest in the All-Wheel Drive Long Range Launch Edition variant is also said to be high.A boost in sales couldn’t come any sooner for Tesla, which has seen its sales fall 65.6 per cent in Australia this year to date, driven by a 71.9 per cent drop in sales last February compared to the previous year. Tesla sold 1592 vehicles last month compared to 5665 the year prior.Some have pointed the finger at the controversial politics of CEO Elon Musk, as the brand also registered a significant sales decline in Europe. Customers are also holding out for the updated Model Y – the brand’s best-selling model.Chinese EV rival BYD is nipping at its heels in the Australian and global markets, having registered a 38.4 per cent sales increase locally compared to last February, equivalent to 3956 sales.That said, sales were mostly attributable to its new Shark 6 Plug-in Hybrid ute, despite its Tesla Model Y competitor, the Sealion 7, showing strong early sales results.More information on the Tesla Model Y, including further pricing and specifications, is expected following its official unveiling at Everything Electric this weekend.

Chinese electric car giant BYD has declared its interest in working with Tesla to combat the sale of petrol and diesel cars.“Our common enemy is the internal combustion engine (ICE) car. We need to work together… to make the industry change,” said BYD’s Vice President, Stella Li, in an interview with the Financial Times.Speaking at a BYD Showroom in London, Li said the brand was willing to share crucial EV autonomous technologies with foreign car brands, despite the US placing a blanket 100 per cent tariff on Chinese-made EVs that effectively bars them from the market.The European Union also imposes a 17 per cent tariff on BYD vehicles on top of a 10 per cent levy on all imported vehicles.“ Chinese government is more open, so maybe there is a lot of wrong perception here,” Li said.Last month, BYD announced it would make its new ‘God’s-Eye’ autonomous driving technology available on most of its global models over the next couple of years for no additional cost via an over-the-air update. The technology is already active on some of its Chinese models.Tesla’s supervised full self-driving system, known as Autopilot, is available in the US for an upfront price of USD$8000 ($12,360) or on a subscription basis for USD$99 ($156) per month.Li's comments came as BYD continues to challenge Tesla’s long-held supremacy on the Global EV market.BYD emerged in 2023 as Tesla's fiercest competitor to the title of the world’s best-selling EV brand, after usurping Tesla's global EV sales in the fourth quarter of December 2023.Tesla regained the title in quarter one of 2024, rounding out the year with 1.78 million sales. BYD wasn’t far behind, though, at approximately 1.7 million EV sales.In Australia, Tesla sales have taken a major hit in the first couple of months of 2025. The controversial politics of CEO Elon Musk have appeared to have an impact, and customers are also awaiting the updated Model Y, the brand’s best-selling model, with deliveries set to commence in Australia in May.As of February 2025, Tesla sales have fallen 65.6 per cent this year to date, driven by a 71.9 per cent drop in sales last February compared to the previous year. Tesla sold 1592 vehicles last month compared to 5665 the year prior.Meanwhile, BYD’s sales grew by 38.4 per cent in Australia last month to 3946 units compared to 2859 the previous February.BYD, which operates tariff-free in the Australian market, saw strong early sales of its plug-in hybrid ute, the Shark 6, and its Tesla Model Y competitor, the Sealion 7. Deliveries of both models commenced earlier this year.

Speculation that Tesla sales are tanking in Australia thanks to the controversial politics of CEO Elon Musk is rife, but is that really the full picture?

A class action lawsuit is being levelled against Tesla in Australia.It is being organised by law firm JGA Saddler and it alleges the company sold vehicles that were defective in Australia.It concerns Tesla Model 3 and Model Y vehicles built from 2021 onwards that are equipped with the Autopilot feature.The class action alleges the brand over promised on the capabilities of its vehicles and some functions didn’t work properly.The three main issues were for phantom braking, which the lawsuit alleges occurs when the auto emergency braking tech brakes at inappropriate circumstances that could lead to an increased risk of an accident.It calls out the vehicles’ driving range, too. The lawsuit alleges owners can not achieve or come close to the advertised range or the range displayed on the vehicle’s dashboard when the battery level is greater than 50 per cent.The final point of the class action surrounds the vehicle's Autopilot claims. It said the hardware on Tesla vehicles is incapable of supporting fully autonomous or close to autonomous driving despite claims to the contrary.The firm is looking for aggrieved owners to take part in the action against Tesla, which will be argued in the Federal Court of Australia.“Tesla made promises about their vehicles’ safety, performance and features such as their ‘full self-driving’, but it appears some of these promises are falling flat,” said JGA Saddler director Rebecca Jancauskas, according to news.com.au.“Imagine your EV has never reached 75 per cent of its advertised battery range, or the promised self-driving features, that you paid a premium of more than $5000 for, have never been delivered,” Ms Jancauskas said.“It is hoped this claim underscores the importance for all EV manufacturers to be truthful in their marketing, deliver on their promises, and ensure their products are safe and reliable,” she said.This isn’t the first time Tesla’s Autopilot feature has been put in the spotlight.In 2020 Germany banned the company from using the term “Autopilot” to describe its semi-autonomous driving features.There have also been numerous reports overseas that Teslas have been involved in accidents when owners have relied too heavily on the technology.Last year an investigation by the National Highway Traffic Safety Administration (NHTSA) in the US found the Autopilot feature had been involved in at least 13 fatal accidents.