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What's the difference?
It is highly unusual to drive around in a bed, but that’s what it felt like we were being asked to do with the new and terribly exciting Tesla Model 3 Performance.
Tesla doesn’t do media launches, nor traditional marketing, so everything about this event was predictably peculiar, but when we were told this new car was causing so much excitement that we should pull a sheet over it every time we stopped, to avoid people photographing it, or touching it (“if someone tries, just politely ask them to stop” as we were advised) we hit peak weirdness.
Eventually, they did agree to pull the sheet off one and let us have a look at the most exciting car Tesla has ever made that’s not a Cybertruck.
The Performance is the Model 3 Tesla engineers and designers always wanted to make. Clearly, it was going to be called the 'Ludicrous', because some staff kept stuffing up and calling it that. It’s a shame the name wasn’t used, but at least it still gets an 'Insane' mode.
They really wanted to go all out with the original Performance version, but “a guy called Elon” didn’t want to add all the complexity that required at the time - he was focused on quality issues and ramping up production - but this go around he has let them have their heads, and encouraged them to go hog wild.
That means an entirely new power unit at the rear, staggered 20-inch wheels for sportier turn-in, aerodynamic changes for more downforce and less lift, new seats and the fitting of active dampers to a Model 3 for the first time, to help provide proper, track-ready handling.
We set out into the embrace of the adoring Los Angeles public (truly, no city on Earth boasts so many Tesla owners, they are everywhere) to find out if all the fuss is worth it.
As recently as this time last year, Tesla was riding high. It was the darling of the electric vehicle world, the leader of the pack thanks to its colourful leader, Elon Musk.
Fast forward to now and so much has happened to Tesla in the last year it’s hard to know where to start. Sales have declined around the globe and Musk has become one of the most polarising human beings on the planet.
But that’s only part of the story, and part of the reason Tesla’s sales have dropped. The cold, hard reality of the automotive industry has also hit the American brand for the first time in its existence. A large part of the brand’s success has come from bucking the automotive industry norms, but now it appears to be dawning on Tesla that there is a reason why the rest of the industry does things the way it does.
Until now the brand has been seen as new and different, but as its cars, most notably this popular Model Y SUV start to age, they have become stale after five years on sale. So, Tesla has reverted to the tried and tested method of a mid-life facelift and other upgrades to make the Model Y look new and more appealing to buyers.
Will this be enough to turn around the sales slide? It’s hard to quantify exactly what impact Musk’s political stance is having, so we’ll stick to telling you about the car. Because, to be frank, regardless of how you feel about the owner of the company, if the product doesn’t appeal to customers, then it simply won’t sell.
The Model 3 Performance is one of those cars that’s undeniably impressive in almost every way, and hugely fast in absolutely every way, and yet can somehow still leave you feeling slightly cold. Or at least damp with fear sweat.
It’s not my kind of sports car, but if you love speed, and EVs, and Tesla, you’re gong to think it’s the Queen Bee’s knees.
Publishers: Please place the following in BOLD after the verdict:
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.
Tesla’s design folks waxed long and loud about how they’d finally been able to visually lift and separate this Performance Model 3 from the basic one and they point to the new front and rear fascias, more aggressive styling, aerodynamic flicks, integrated cooling ducts, rear diffuser and carbon-fibre spoiler, which are there not only to look good, but to to “optimise lift balance and high-speed stability”.
Now, I’ll grant you it’s better than a normal Model 3, and that we were regularly approached by excited Tesla fans asking “is this the NEW PERFORMANCE OH MY GOD I WANT ONE NOW?!?"
But honestly, I still think it’s a bit subtle, and that includes the strange little 'Performance' sticker/badge on the rear, which does look a lot like the Ludicrous symbol that Elon loves, from the awful movie Spaceballs, but Tesla staff insist it’s not, nor is it Plaid.
Clearly, the design tweaks are there for a reason, and train spotters will note the differences immediately, but it’s still just not the most exciting car to look at, nor is it anywhere near as exciting to behold as it is to drive.
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.
Inside, the big news is the new seats. Tesla was happy to admit the pews fitted to the previous Performance just weren’t up to the job of holding humans in place when applying so much G force.
The new 'Sport Seats' feature enhanced side cushioning and side bolsters for better lateral support during dynamic driving. And they can also be heated and ventilated.
Elsewhere, there’s some carbon-fibre trim on top of the dash, with a Tesla-first weave pattern to further help the Performance stand out within the Model 3 line-up.
Other than that, it’s pretty standard Tesla sedan, which will be familiar if you’ve ever caught an Uber in Los Angeles. Spartan, minimalist, slightly cheap-feeling.
As for the practicality of the tech, I'm still against the giant 15-inch tablet-style touchscreen, for everything, the replacement of an indicator stalk with buttons and not having a speedo right in front of your eyes, where you need it.
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.
Tesla says the price for the Model 3 Performance will be "starting at" $80,900, plus on-road costs. There's no word on whether there will be different spec levels and the company does not like answering questions or providing information.
What we also know about Tesla is that the price quoted could move down, or up, at any time, quite randomly, so if phrases like "residual value" or "depreciation" are of interest to you, it can be a challenging brand.
That side swipe aside, this sounds like astonishingly good value for this much performance from your Model 3 Performance. A Hyundai Ioniq 5 N would give it run for fun and involvement, if not brand fans, but it's $111,000, while a Porsche Taycan kicks off at $164,000 (it is a lot more car for the money, but it might struggle to keep up with this Tesla, at least in base model form).
In terms of equipment, it's pretty much standard Model 3 fare, other than the fast bits and a spot of carbon here and there.
You get 'Autopilot' included, of course, but you can't use all of its 'Full Self Driving functionality' on Australian roads. Not yet, anyway.
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.
If you’ve ever driven the previous Model 3 Performance you’ll know that it could well have come with Space X badging (arguably Elon’s more impressive engineering achievement), because it really did thrust rather than accelerate.
But this time the engineers wanted to go all out. Customers appreciated the incremental performance they got from the last Model 3 Performance version, but they told Tesla they wanted more.
With many enthusiasts among Tesla's engineering and development team, they looked to unlock the performance potential of the platform.
So, that meant a whole lot more madness and torque thump. It comes from a new Performance 4DU, an all-new drive unit - featuring an entirely new rear motor that uses bar-winding technology - unlocking 22 per cent more continuous power, 32 per cent more peak power and 16 per cent higher peak torque delivery.
Overall figures are 380kW and 740Nm, but looking at them written down, they seem big, yet not as big as they feel in this car, as it’s shoving you from a standing start to 100km/h in three seconds flat.
It feels faster. Sick-making fast, even.
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.
Despite being heavier and gruntier, Tesla claims the new Performance Model 3 manages to be more efficient than the one it replaces, albeit delivering just a two per cent reduction in energy consumption. Claimed energy usage is 16.7 kWh/100km.
Tesla claims a total range of 528km on the WLTP, which is obviously going to drop if you drive it the way its makers clearly intended.
Using a Tesla Supercharger, you can add 228km in 15 minutes and... that's all Tesla will tell us. There are no official figures available for how long a full charge takes, on either a Tesla charge or a home wallbox of your own.
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.
Very occasionally, one drives a car that makes the human body feel inadequate to the task. I would have worried that I’m getting old, that my body is simply too flubby and my brain too broken, to cope with the kind of wild acceleration and brutal g-forces the Model 3 Performance delivers.
But, fortunately, I had a videographer in the passenger seat, a much younger man who loves fast cars, and he kept threatening to vomit when I drove it hard, too.
I’ve driven quite a few cars that you can use make your passenger sick, or hurt their necks - one obvious competitor in the shape of a Porsche Taycan Turbo S comes to mind - but it’s very rare that a vehicle is so intense it can make you, the driver, feel bilious.
Yes, you do bring this on yourself, by choosing to push this Performance anywhere near its limits through particularly sharp and intestine-shaped roads like the canyons outside Malibu Tesla chose to launch it on.
On longer, sweeping bends it was far more of a joy, and less physically punishing, but in the tight stuff it often felt like corners were being thrown at you, as if you were driving behind the Millennium Falcon and being pulled along in its wake.
The brakes, special new sporting ones with track-ready pads, were up to the task, even though it often felt like they couldn’t possibly pull you up from the speeds you were doing.
And yes, it was entirely my fault that the very first time I even gently prodded the throttle and it launched me ahead past a California Highway Patrol officer, that was my fault too. Three minutes into the drive, holding an American fine, I had already deduced that perhaps this car was too fast for my own good.
But lots of EVs are fast in a straight line, you’re really comparing the length and depth of your “oooophhh” sounds at this point, but where this one succeeds is by being a lot better in the handling and ride and cornering departments than most.
Tesla’s stated goal with this car was to move beyond straight-line speed, to become more than a one-trick pony, and to do that it’s given the Performance a stiffer structure overall and updated the springs and stabiliser bars.
Aerodynamic changes have reduced drag by five per cent, delivered a 36 per cent lift reduction, and a 55 per cent improvement in front-to-rear lift balance.
Tesla’s own, in-house version of adaptive dampers, not an option but included in every Performance, work with the car’s 'Vehicle Dynamics Controller' through its various modes - 'Insane' and 'Track' being the most… ludicrous - to immediately respond to driver inputs.
The Performance rides well on LA’s awful concrete freeways but feels absolutely nailed down when you attack even a bumpy driver’s road.
This version also has a lot more power going to the rear wheels, to help it feel more sports-car playful and to fire out of bends the way an enthusiast’s car should. And make no mistake, I met them, the people behind this car are serious driving enthusiasts (although they demur, slightly, on whether their boss is one).
Track mode will allow some serious adjustability, drifting ability and fun, so the kind of people who want to hurl around a racing circuit in silence will love it.
Perhaps the only let downs are that it still feels a bit austere inside, just not very special, and that the steering is just a bit digital, soft and uninvolving, compared to the cars they clearly benchmarked against - BMWs and Porsches.
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.
Tesla provided no information about safety for the Performance Model but it is assumed it will be unchanged from a standard Model 3.
Aside from Autopilot that means auto emergency braking, lane keep aids, and instead of blind-spot monitoring, it gets the surround radar view and blind-spot cameras when you indicate.
The latest Model 3 has an additional centre airbag for a total of seven, as well as additional bolstering where the doors meet the body in response to requirements in its American home market.
It should be able to carry its maximum five-star ANCAP safety rating, which the original version achieved in 2019.
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.
Again, we've been asked to assume the Performance will come with Tesla's standard four-year/80,000km warranty and roadside assistance. And that the battery and drive unit will fall under an eight-year/192,000km warranty, whichever comes first.
Tesla says it monitors its cars to ascertain when they need servicing, and so it is based on a case-by-case situation. Every 12 months/20,000km is recommended for a general check-up, and includes tyre rotation.
Wiper blades, brake fluid and cabin air filters need replacement every two years while the air-con service is every six years.
Of course, there are no oil changes, filters or spark plugs to replace, and even brake pad wear is less than on an ICE vehicle because of the regenerative braking system. Although it will likely be higher in the Performance variant.
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.