Tesla Model Y vs Mercedes-Benz GLC-Class

What's the difference?

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.

Like I said right from the start, this new, hybrid version of the AMG GLC63 is technically superior to the model it replaces in every meaningful way. It is faster, more powerful and more fuel efficient and therefore a better performance SUV than the model it replaces.

Is it a better model than the one it replaces? Ultimately that will come down to how much stock you put into the soundtrack and your feelings on an AMG not powered by a V8 engine.

Because if you can see past that, then the AMG GLC63 is an absolutely fantastic performance SUV. Not only does the new powertrain make it faster in a straight line, but the chassis is very well-balanced, making for an engaging driving experience.

For those who can look past the smaller engine they will be rewarded with an incredibly fast and rewarding-to-drive member of the AMG family.

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and 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.

The GLC63 is unmistakably an AMG from the moment you first lay eyes on it. That’s thanks to the AMG-specific elements, starting with the grille with vertical strikes and the AMG crest on the bonnet; which is now a signature item for the performance sub-brand.

The GLC63 is also fitted with the Night Package II design kit; this adds a darkened grille and black chrome badging to further enhance its visual appeal.

The AMG-specific alloy wheels and more aggressive stance do mean the GLC63 stands out from the rest of the GLC range, helping it look fast even when it’s standing still.

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.

Inside the GLC63 is clearly a derivative of the rest of the range, with its C-Class-inspired design and layout, but there’s enough AMG-specific elements to ensure it looks and feels special. This starts with the AMG steering wheel, which comes not only with a thick rim wrapped in Alcantara, but also some AMG special dials to adjust the various performance settings for the powertrain, suspension and transmission.

Then there are the AMG-specific seats, which look good and offer good support for the driver and front seat passenger. The rear seats offer decent space for what is a mid-size SUV, with room enough for two adults or teenagers or three smaller kids.

Those in the back aren’t particularly well looked after though, with only rear air-con vents and small door pockets but no USB charging ports or other small item storage.

The boot is 590 litres, down from 620L in the rest of the range, thanks to the addition of the rear-mounted electric motor. There’s also no room for the temporary spare the rest of the GLC range gets and instead you have to make do with a puncture repair kit.

The power and torque figures aren’t the only numbers that have risen sharply, with the GLC63 clearly impacted by a double whammy of inflation and the usual new-car price rise.

The GLC63 now starts at more than $191,814 for the SUV and $198,415 for the Coupe, which represents a nearly $30k increase over the old V8-powered model, which was priced at $164,600 just two years ago. Even for luxury car buyers that’s a big jump, especially when you’re trying to convince people of the merits of the four-cylinder powertrain. 

That also means it's more expensive than all of its key competitors, including the BMW X3 M Competition, Maserati’s Grecale and the outgoing, petrol-powered Porsche Macan GTS.

To help explain some of this price increase Mercedes-Benz Australia has opted for a high level of standard specification for local cars. Standard equipment includes 21-inch alloys, AMG composite braking, a panoramic sliding sunroof, a unique AMG steering wheel, power-adjustable sports seats in Nappa leather, a head-up display, dual-zone climate control, wireless smartphone charging and a Burmester 3D Sound system.

Also included is the AMG Track Pace suite, for those who want to unleash their GLC on the racetrack.

There’s also a limited run, AMG Edition 1 Package available too, for an additional $12,900. On the outside you get Manufaktur graphite grey magno paint, foiling with colour gradation and large AMG logo on the sides, an AMG Aerodynamics Package, unique alloy wheels with Edition 1 and AMG branding, yellow brake calipers and an AMG fuel filler cap in silver chrome with AMG lettering. 

Inside there’s AMG Performance seats, AMG Nappa leather in black with yellow contrasting stitching, AMG illuminated door sills,  carbon-fibre AMG trim highlights, yellow seat belts and a unique AMG Performance steering wheel wrapped in carbon-fibre and microfibre.

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.

This is what lies at the heart of the AMG GLC63’s success or failure. As I mentioned at the beginning, the previous generation’s 4.0-litre twin-turbo V8 has been replaced by an F1-inspired plug-in hybrid powertrain.

But don’t think that means AMG is suddenly focused on efficiency over performance. When AMG says the powertrain is inspired by the brand’s success in Formula 1 racing, what it means is the battery and electric motor provides a significant performance boost to support the internal combustion engine, not just save fuel.

To that end the combination of the turbocharged 2.0-litre four-cylinder petrol engine and the rear-mounted electric motor produces an impressive 500kW and 1020Nm. That’s a massive jump over the 375kW/700Nm made by the outgoing V8.

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.

Mercedes makes no secret that the battery is designed for performance, not saving fuel. It only has a 14km EV range but can recharge quickly on the move to provide a power boost when needed.

But despite all that, the GLC63 is actually significantly more fuel efficient than the old V8, using a claimed 7.3L/100km, which is a massive 4.9L/100km improvement over the old model. Although, on our day-long test drive we didn’t manage to come close to that claimed figure and instead saw returns around 11L/100km, albeit after a lot of spirited open-road driving.

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.

Anyone who still believes in the adage ‘there’s no replacement for displacement’ hasn’t driven a modern turbocharged and hybridised engine. The GLC63 is a demonstration of the metaphorical and literal power of modern technology, combining an extremely efficient and potent internal combustion engine with an electric motor to make enormous real-world performance.

To be blunt, the GLC63 feels like a rocketship out of corners, launching with a ferocity and relentlessness the old V8 simply can’t match. It shouldn’t come as a surprise, a mid-size SUV with 1020Nm was always going to have plenty of performance, but even so it’s a shock to the system every time you give the GLC63 full throttle. Officially AMG claims it takes just 3.5 seconds to run 0-100km/h and has an electronically limited top speed of 275km/h - mighty impressive figures for a five-seat mid-size SUV.

To help get all that torque to the road, AMG deploys torque distribution technology that allows for it to be split an even 50/50 front/rear all the way to 100 per cent to the rear tyres.

Other technologies deployed to enhance its handling include AMG Ride Control suspension with adaptive damping and rear-axle steering. There’s also eight AMG Dynamic Select driving modes and four AMG Dynamics settings (Basic, Advanced, Pro and Master), so it’s a complex vehicle that is designed for the enthusiast.

While it’s easy to drive around town, once you get out on the open road you can really get a sense of the GLC63’s performance potential. Beyond just its powertrain the suspension offers good body control and the rear-axle steering helps it feel agile and responsive. 

It’s not perfect though. At times the complexity of the system does lead to some hesitation when you put your foot down. It certainly lacks the linear power delivery of the old V8 and makes for a slightly trickier driving experience at times.

As for the sound, which is one of the biggest elements missing from the V8, Mercedes has added AMG Real Performance Sound, which features a pressure sensor in the exhaust that picks up on the engine note and plays it through the speaker system. It certainly helps make for a louder, more noticeable engine noise, but it still sounds more like an A45 than the previous GLC63 and for many would-be buyers, that’s a major turn-off.

The GLC63 comes standard with a comprehensive suite of safety features including 'Distronic' (Mercedes’ name for adaptive cruise control), 'Active Lane Keeping Assist', 'Blind Spot Assist', 'Traffic Light Assist' and 'Adaptive Highbeam Assist'. It also includes Mercedes’ 'Pre-Safe' accident anticipation system - which pre-tensions the seat belts and will even play a white noise to protect your ears if it senses a crash is imminent.

A parking system that includes a 360-degree camera and active parking assist is also included.

The GLC range was awarded a five-star ANCAP rating in 2022, which pre-dates the latest testing protocols, so doesn’t provide a like-to-like comparison for vehicles tested after that date.

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 GLC63 is covered by Mercedes Australia’s usual five-year/unlimited kilometres warranty.

As for maintenance, Mercedes offers service plans, spanning three to five years. Three years will cost you $5025, $6455 for four years and five years is priced from $7180. Servicing intervals are 12 months or 20,000km, whichever comes first.