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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 EV revolution is bringing plenty of firsts, and this big electric behemoth is yet another one. Meet the EQS450, which Mercedes describes as its first "electric luxury full-size SUV with seven seats".
That is a bit of a mouthful though, right? So let’s shortcut that a bit, shall we?
What you really need to know is that this is one of the few proper seven-seat electric SUVs on sale in Australia, so it will — a little surprisingly — end up being compared with the increasingly premium Kia and its EV9 when it launches in November.
So what does this electric answer to a high-riding S-Class bring to the table? Well, lots of luxury, of course.
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.
Does electrification enhance the seven-seat SUV experience? In the case of the EQS450, the answer is yes. Smoother, quieter and with plenty of easy-flowing power, the brand's family-focused luxury electric SUV behaves exactly as you might expect.
Note: CarsGuide attended this event as a guest of the manufacturer, with meals provided.
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.
It’s a handsome SUV, and one that’s not immediately recognisable as electric — especially given there are little exhaust-pipe-mirroring design flourishes at the rear which make you look twice.
Aussie-spec cars get the AMG exterior treatment, which includes AMG alloys, aluminium-look side steps and the power-domed bonnet, but there's still nothing overly 'shouty' about the design, with the sleek, smooth body panels (accentuated by the hidden handles) making the EQS450 look smaller than it actually is.
Inside, it’s a super-comfy space to spend time, and the little fluffy pillows attached to the headrests should be standard in every car. The tech on offer is ample, too.
But it does all feel a little gigantic, with great swathes of wood panelling and massive screens, all of which make you feel bit like you’ve been shrunken down and are now living amongst the giants.
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 EQS450 stretches 5136mm in length, 1965mm in width and 1718mm in height. That's about the size of a Nissan Patrol and long enough to make it a proper seven-seater.
The middle row can be adjusted forwards or backwards, and with the front seat set to my 175cm driving position, I found I had ample head and knee room to get comfortable.
USB-A charge points abound, and there's wireless device charging, and because of the sheer size of the cabin, the storage options are plentiful. The central bin between the front seats, for example, seems styled on the Grand Canyon.
In the third row, though, things get a little tighter, but it’s perfectly good for kids. My knees were touching the seat in front, however, and it still requires some acrobatics to climb into.
At the rear, with all three seats in place, you'll find 245L of room (measured to the ceiling), growing to a maximum 1030L with the third row flat. Stow the second row, and you'll find a maximum 2020L of storage space – which, and take my word for it – is plenty.
One small quirk, though. While the second row is electric, stowing away at the touch of a button, the third row isn't. That means, when it's flat, you have to climb into the boot to pull it back up, or attack it from the rear door. Either way, it's more awkward than it needs to be.
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.
Arguably the biggest hurdle the EQS450 has to clear is its asking price, which is a considerable $194,900, before on-road costs.
Inside, you'll find leather seats and trim, a big 12.8-inch central display (and a head-up display), a 12.3-inch digital instrument display, a Burmester sound system with 15 speakers, a panoramic sunroof and cooling and heating in the front seats.
Outside, there are 21-inch alloys, flush-fitting door handles, illuminated running boards and LED lighting, which Benz calls 'Digital Lighting', and offers 1.3m pixels of light per headlight.
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.
There are two electric motors delivering the driving power, one at the front axle and one at the rear, which will deliver a combined 265kW and 800Nm, fed through a single-speed transmission and with all four wheels being powered.
That's enough for a sprint to 100km/h of 6.0 seconds.
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.
There's a huge 107.8kWh on board here, but the EQS450's driving range is a less impressive 483km. Maybe something to do with the 2918kg weight of this big SUV.
Don't get me wrong, 483km is plenty to cover almost anyone's weekly commute (and then some), but early promises had pointed to a range of more like 600km.
When it comes time to plug in, you'll find the EQS450 is set up for 200kW DC fast charging, which should see you go from 10 to 80 percent charged in just 31 minutes.
Home charging is, of course, a slower proposition. A three-phase 11kW supply should take 10 hours, while a 7.0kW wallbox will be slower again, and more like 15 hours.
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 drive experience is, well, unremarkable. But I don’t want that to sound negative, because that's not how it's intended.
The EQS450 SUV does exactly what you expect a circa-three-tonne, premium electric SUV to do, and it does it all well.
It's powerful enough without being exhilarating, comfortable enough, and laden with enough tech to satisfy almost anyone.
It's just that it also doesn't exactly ignite the senses. But the question must be asked, what seven-seat family-focused SUV does? Few, if any.
So, surely the real test is if electrification has improved the formula here, and I'd argue that it definitely has.
For one, the EQS450 is properly whisper-quiet in the cabin, with Benz employing multiple sound-deadening techniques at once to lock out road noise. And with no pesky engine to interfere, the cabin is about as serene as they come.
The power delivery is predictably smooth and easy, too. There is no headline-stealing acceleration figure here, but the power is potent and plentiful, and more than enough for any real-world situation you might encounter.
The ride, too, is commendable. Aided by Mercedes' air suspension, it glides over all but the most broken road surfaces. And it is fitted with rear-axle steering, which really does cut down a turning circle that would otherwise surely resemble that of a cruise ship.
It feels heavy at times, though, and even the most high-tech suspension can't eliminate body roll entirely through tighter corners (physics and all that).
But unless you're really pushing – and why would you be – the cabin is calm, comfortable and cosseting.
So, exciting? Not really. But comfortable and calming, which are probably the traits its owners will value much higher.
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 EQS450 SUV is yet to be ANCAP crash tested, but you can expect an extensive suite of active safety equipment, including AEB with pedestrian and cyclist detection and junction assist, adaptive cruise control, active lane keep assist, lane change assist and steering assist, traffic sign recognition and eight airbags.
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 Mercedes EQS450 is covered by Mercedes-Benz's five-year, unlimited-kilometre warranty, with servicing required every 12 months or 25,000km.
You can prepay your service costs, coming in at $2350 for three years, $3695 for four years or $4280 for five years.
The battery its covered for eight years or 160,000km.