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What's the difference?
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 Lexus RX holds broad appeal. Families with a bit of money that don’t need a third seating row, older people who love the brand and want a bit of space, and people stepping up into the premium marque from a mainstream brand are all potential buyers.
The fifth-generation version that launched in early 2023 proved to be a significant step up over the previous RX.
Lexus made it more dynamically capable, and there’s been a sharpened focus on refinement, value-for-money and safety credentials.
We spent three weeks getting to know the most affordable RX - the entry-grade Lexus RX350h Luxury two-wheel drive - to see whether it’s worth putting it at the top of your premium family SUV shopping list.
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’s hard to look past the value equation of the RX350h Luxury 2WD when comparing it to almost all its competitors. The pricing is on point, but there are some features missing.
However, there are very few (if any) rivals with a true hybrid powertrain (sorry, mild hybrids do not count), so the RX will capture buyers looking for environmental credentials and efficiency without going full EV.
The drive experience is much better than before and it’s all wrapped up in a very stylish package. The Lexus RX should not be ignored.
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.
Across its five generations, the RX has held significant visual appeal - especially the still-handsome second-gen version that was the first RX sold Down Under. The first-gen model skipped Australia.
The new model that launched in 2023 is a clear evolution of the car that came before, but it’s been softened and sharpened in the right areas, giving it one of the most appealing designs in its segment.
The proportions and design elements like the squat stance, unique C-pillar treatment, slimline headlights and nicely sloping roofline give it a sporty look.
In fact, I reckon it might be the best looking Lexus available today - not including the jaw-droppingly beautiful LC coupe and convertible, of course.
The interior is modern and feels like an evolution of Lexus’ previous cabin design - but elevated. The gloss black section of the dash helps here.
Levels built into the dash break up the bulk, but the interior is very grey. It could do with a dash of colour.
The synthetic leather seat trim doesn’t look premium. If you want a more expensive feeling RX, you need to pay more for a higher grade.
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.
The RX is a five-seat only proposition in this generation - the previous model had a seven-seat option - so if you need a third row you can look at the Lexus LM people mover or massive LX 4x4 SUV, or at any number of other three-row lux SUVs like the Volvo XC90 or new Mazda CX-90.
That doesn’t mean the cabin isn’t practical.
Up front the seats offer excellent comfort levels and ample upper body support, but not a lot of hip support.
Lexus has changed up the door handles for the new RX and it can be complicated - initially.
The interior handles bamboozled every new person that got in my press car over the three week loan. But once you realise it’s a simple push of the thumb on the handle’s thumbpad and a gentle push, it all makes sense.
Lexus calls the electrically activated door handles an ‘e-latch’. Is it tech for tech’s sake? Probably.
I recently reviewed the Lexus LM and commented on how much I like Lexus steering wheels and that’s true of the RX, too.
It has clearly identifiable controls and feels nice in your hands. Thankfully, the cruise control buttons are housed on the wheel too, so no annoying stalk on the wheel.
There’s plenty of space across the front row so you should avoid the awkward driver-passenger elbow bump on the centre armrest.
Under the armrest is a huge central bin that opens on the driver and passenger side. There’s also a big covered storage nook forward of the shifter and another ledge above that, as well as a sizeable glove box.
The doors have ample storage room for bottles, but the space is almost too wide. My bottle slid around when driving so I had to lay it down.
The centre console houses two big cupholders with adjustable depth in one of them. Clever touches like this and the central bin add to the appeal.
As with the Lexus LM, I am a fan of the new Lexus multimedia set-up. It has an easy-to-navigate menu along the side, easy wireless Apple CarPlay connection, and visually appealing graphics.
It’s a world away from Lexus’ previous system. That frustrating touchpad is, thankfully, in the bin.
I quite like the gear shifter with its unusual gate and even the indicator feels and sounds premium.
Small rear windows make for a rear three quarter blind spot, but visibility is otherwise good.
On a side note, the RX has very strong air conditioning - perfect for an Australian summer.
Jumping into the second row, there’s plenty of space all around and no shortage of head, leg, knee and shoulder room. Although foot room under the front seats is tight.
As with the front seats, the rear row offers comfortable seating. Kids should be happy back there.
There’s only a small transmission tunnel so middle-seat legroom is good. And in great news for passengers, the rear backrests recline.
Lowering the 40/20/40 split-fold rear seats for more cargo space is done via a lever on the side of the outboard seats, or by a button in the boot area. There are ISOFIX clips on the two outboard seats.
Other amenities in the second row include map pockets, two USB-C ports, knee-level air vents, climate control, and a pull-down armrest with pop-open cupholders.
Open the power tailgate and you’ll find cargo space of 612 litres with all seats in place, or 1678L with the second row stowed.
That’s a decent amount of space but not class leading. The Mercedes-Benz GLE has 630L and the VW Touareg can swallow 810L.
There’s no under-floor storage because that’s where some hybrid hardware is housed. You will find audio speakers, nice carpet, a cargo blind, two 4.0kg hooks and three top tethers. No spare, only a tyre repair kit.
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.
The range-opening RX350h Luxury 2WD petrol-electric hybrid starts at $86,904, before on-road costs, and for that amount, the standard specification list is healthy. But it doesn’t include everything.
As well as a long list of standard safety gear (see section below), the RX350h comes with three-zone climate control, heated and eight-way adjustable power front seats, electric steering wheel adjust, rain-sensing wipers, a 14-inch multimedia set-up with wired Android Auto and wireless Apple CarPlay, digital radio, sat nav, a 12-speaker audio system, five USB-C (and one USB-A) ports and more.
It is missing a few items, however, that should be standard, such as a head-up display and wireless device charging. Those features are available as part of an options pack - or 'Enhancement Pack' in Lexus speak.
For $5000 more you get those two things and a panoramic sunroof, ventilated seats, a more digital instrument cluster and other goodies.
You can opt for an all-wheel drive version of the 350h and that adds just over $3500 to the price. If you want the same powertrain but more gear then you’ll need to step up to the $110,575 Sports Luxury.
There’s also the petrol-only RX350 in F Sport and Sports Luxury guise, as well as the flagship RX500h F Sport Performance hybrid that tops out at $124,675.
Looking at the opening price of some of its rivals, Lexus has most of them beat.
The Mercedes-Benz GLE300d starts from $144,900, the BMW X5 xDrive30d is $134,900, Porsche Cayenne starts at $138,700 and the Volvo XC90 B5 Ultimate Bright kicks off from $100,990.
Only the Volkswagen Touareg 170TDI ($89,240) and Jaguar F-Pace P250 R-Dynamic ($83,700) are close on price.
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.
Powering the RX350h is a series parallel hybrid system consisting of a naturally aspirated 2.5-litre four-cylinder petrol engine, a front-mounted motor and a nickel-metal hydride battery.
Lexus doesn’t provide combined torque outputs for the hybrid, but total power for the system is pegged at 184kW.
This drives the front wheels only via a continuously variable transmission (CVT).
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.
The official combined cycle fuel consumption figure for the RX350h 2WD is 5.0 litres per 100 kilometres, with CO2 emissions of 114g/km. You won’t get figures like that in a petrol or diesel competitor.
Over three weeks of mixed city, country, urban and freeway driving, I recorded 6.8L/100km which is not too bad given some of my spirited driving. The trip computer said 7.0L which is close to my figure.
The RX350h takes premium unleaded petrol and has a 65-litre fuel tank, so expect a range of around 950km based on our real-world consumption number.
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.
The old RX was competent and even nice to drive but not a patch on the likes of the BMW X5. The new-gen RX improves on that in a big way.
It offers solid acceleration from a standing start. Lexus says 8.1sec from 0-100km/h - without giving you chills. The sportiest RX is the 500h Performance hybrid and that covers the same distance in 6.2sec.
The transition from electric power to petrol propulsion is more evident in this model than it was in the LM350h people mover I tested recently - the RX is a little noisier. The CVT doesn’t help this, offering up an uninspiring engine note.
It is, however, a much more fun car to push into tight bends than the previous RX. It remains reasonably flat in corners, and pulls out of tem with ease, but can’t compare to the dynamics of the dearly departed IS sedan.
The 19-inch tyres have large sidewalls and as a result soak up harsh bumps on the road. The non-adaptive suspension is tuned for better dynamism, meaning the ride quality is on the firm side.
The front-wheel drive RX lost traction for a second on a sweeping uphill section of my drive route, but the electronic traction systems otherwise kept the big SUV in check.
But around town in urban areas, there is very little to complain about behind the wheel of the RX350h.
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.
The RX comes packed with standard safety gear and the SUV was awarded a maximum five-star crash safety rating from ANCAP in 2022.
Just some of the inclusions are auto emergency braking with pedestrian (day/night), cyclist (day/night) and motorcyclist (day) detection, intersection assist, emergency steering assist, driver monitoring, lane keeping aid and lane departure warning, adaptive cruise control, front and rear parking sensors, blind spot monitor (including stationary) with rear cross-traffic alert and safe exit assist to avoid 'dooring' incidents.
I must say, Lexus’ (and parent company Toyota’s) driver assistance tech has come a long way.
In the early days of the pandemic during a rare non-lockdown period in Melbourne, I drove from Melbourne to Sydney in the previous-generation Lexus RX200 Sports Luxury.
The lane keeping system and adaptive cruise control were shockingly underdone. The cruise control would simply stop working when you encountered even a slight downhill section.
Not anymore. The new, smoother lane keeping set-up uses subtle wheel adjustments, unlike the ping pong effect of the previous RX, and the cruise system is now very much in control of the speed.
The Lexus safety suite now operates without too much intervention and is hard to beat among its key rivals.
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.
The RX350h is covered by a five-year, unlimited-kilometre warranty, and the servicing schedule is every 12 months or 15,000km.
There’s a capped-price servicing plan lasting five years and it will cost $695 per service. That's significantly less than some rivals like the Mercedes GLE.
The RX is covered by the 'Lexus Encore' loyalty program and includes complimentary service loan cars, fuel offers as well as discounts and other offers with Lexus partners.