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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.
Throughout its history Volvo has been known for a lot of things. Being a safety leader, dorky but endearing station wagons, ‘bloody Volvo drivers’, and more recently, a trailblazer in minimalist premium design.
The C40 is the first step in a next chapter for Volvo, with the brand wanting to be known next for its leadership in the electric space. For the first time for Volvo, it’s a fully electric offering
But in a world of Teslas, Polestars, and Mercedes Benz EQs, where does the C40 sit, and is it worth considering in an increasingly congested premium small SUV space?
We went to its Australian launch to find out.
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.
The C40 becomes a compelling option in the electrified small SUV space, offering a premium look and feel, great range and tech inclusions at the price, as well as awesome on-road dynamics.
Its main downsides are the rear seat, which is compromised by its platform and design-led roofline, and the overwhelming power and added traction of the dual-motor makes the single motor less attractive on the value front.
Still, regardless of variant chosen, the C40 looks to offer a stand-out balance of price, range, and performance, against its traditional rivals and newcomers alike.
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.
Volvo has become a brand with a distinctive and consistent design language which embodies the kind of beautiful minimalism normally associated with Scandinavian brands.
I have always liked how Volvo says more with less design elements, with only gentle touches of chrome or gloss black, and a lack of over-the-top sporty pieces avoiding the temptation to over-sell the sporty potential of the brand’s range.
The C40 takes the small SUV formula, well established by its XC40 relation, and gets a bit weird and experimental. It’s slightly lower and has a more coupe-styled rear, with a strongly raked rear window giving it a sportier and more aggressive look than the rest of Volvo’s SUV range.
The styling is sold by an angular spoiler piece running atop the boot, and the rear light clusters have gone all minimalist, constructed of individual pieces rather than a single transparent housing, and they give a nod to the C30 hatchback which this car is the spiritual successor to, by name and nature.
The interior offers up no surprises, sticking to the formula Volvo has established across all of its current models. An effortlessly premium space with, again, a minimalistic dash dominated by the portrait touchscreen, the C40’s premium nature is confirmed by its finely patterned inlays, simple chrome pieces, and abundance of soft-touch surfaces.
The big upright vent fittings with clever rhomboid patterns on their adjustment dials are always a highlight piece of modern Volvos, and the pattern work is continued on the central volume adjust dial and even on the little rotating pieces of the light and wiper stalks. Clever.
Even the software is paired back on the multimedia suite and digital dashboard, with easy to use shortcuts and simple menus which suit the car.
Volvo might turn off some buyers with the more unconventional shape of the C40. But for those looking for a more traditional SUV it also offers the XC40 in the same two variants, and the Polestar 2 caters to those not looking for an SUV at all.
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 C40 is essentially a XC40 with a cropped down roofline, and there are some obvious downsides which this new shape brings.
The front seat throws no surprises, though, offering plenty of room for two adults with a welcome level of adjustability for the seat and wheel. The seats could be more comfortable, though, with a notable lack of padding in the base compared to some luxury (or even non-luxury) rivals.
I’m a fan of the fabric trim which comes on both grades, bucking the trend of needing to have leather or leather-like trim for a car to feel ‘premium’.
The ample window space up front, including the massive glass roof helps the C40’s cabin feel spacious, but the view out the rear with its aggressive design is all but a very limited letterbox aspect, particularly if the rear seat headrests are in the upright position.
While some controls are exclusively via touch interface, there is a physical volume dial, and shortcut buttons for the defogger functions.
Temperature is controlled by touch, however, and the detail settings have some smaller toggle adjustments. Tricky to jab at when you’re on the move.
The digital dash is refreshingly simple, but minimally adjustable, with the choice of either a nifty navigation screen, a blank screen, or trip details being the only options.
Cabin storage is good but not stellar. There are bottle holders and big pockets in the doors, a set of two cupholders in the centre (beats the Polestar 2’s single cupholder), a small tray with a wireless charger under the multimedia screen, and a smallish console armrest box.
The rear seat is where the real problem exists. Unlike the XC40, the C40’s cropped roofline means my head was hard up against the roof (I’m 182cm tall).
I did have decent knee room behind my own seating position, however the seat comfort in the back still isn’t as good as some rivals.
The middle position is also compromised, thanks to the raised centre floor piece the C40’s platform needs to facilitate all-wheel drive in its combustion relations.
A bottle holder appears in each door pocket, and in a rare inclusion, there are heated outboard rear seats, adjustable air vents, and USB-C charging ports.
The boot has a quoted capacity of 413 litres with the rear seats up. The floor is comparatively high suggesting a smallish space when loaded with luggage cases, for instance. Stay tuned for a follow-up review so we can see how well it holds our three-piece demo set.
The floor itself has an adjustable, pop-up divider and multiple luggage hooks, making it quite versatile, and there is a cavity beneath which can hold your charging cables as well as the inflator kit in place of a spare wheel.
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.
When it comes to electric vehicles, it’s impossible to consider price alone, as you also have to consider driving range, and the C40 manages to impress on both fronts.
Its refreshingly simplified range consists of just two highly-specified variants, a single motor which starts from $74,990, offering a 434km driving range, or a dual motor starting from $82,490 which offers a 420km driving range.
There’s much more devil in the detail, but to set the scene there are now quite a few direct rivals in this price-bracket, including everything from the Tesla Model Y (from $72,300), Mercedes-Benz EQA (from $78,513), Polestar 2 (from $63,900) and even the Kia Niro which is similarly sized and specified (from $65,300).
Interestingly, the C40 is closely related to the Polestar 2, but has a much higher base starting price. Volvo says this is because it carries a higher standard specification, and offers the C40 without option packs.
Standard gear on the base single motor C40 includes 19-inch alloy wheels, a 9.0-inch portrait multimedia touchscreen (running a Google-based always-online software suite), LED headlights, dual-zone climate control, a fixed panoramic sunroof, electrically adjustable front seats, heated seats for the front two and outboard rear seats, a powered tailgate, as well as keyless entry with touch-free ignition.
Interestingly, Volvo also told us some 90 per cent of customer interest so far has been for the more expensive dual-motor variant, which is particularly impressive for doubling the power output while adding 20-inch alloy wheels, a 360-degree parking suite, premium Harmon Kardon audio, and an alternate interior trim.
Both variants score safety equipment and items which are otherwise part of expensive option packs in the Polestar 2 range. We’ll take a look at the full safety gear later in this review.
Overall, the C40 impresses on the premium car value front compared to rivals, bolstered by solid range and impressive performance.
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.
Great news here, the C40 can be chosen with two powerful layouts, either a front-wheel drive 170kW/330Nm set-up, or a dual-motor all-wheel drive arrangement, able to make use of nearly double the power at 300kW/660Nm. The dual-motor is capable of sprinting from 0-100km/h in just 4.7 seconds.
The front-drive is backed by a 69kWh battery allowing it a 434km range, while the dual motor ups the battery size to 78kWh to allow a 420km driving range.
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.
Surprisingly, energy consumption is quite high for both C40 variants. The single motor is the more efficient of the two, consuming 16.8kWh/100km on the more lenient ADR testing schedule, while the dual motor officially consumes 22.2kWh/100km to the same standard. I saw around 23kWh/100km overall in my short test of the dual-motor variant.
Energy consumption could be better for both, as I have achieved more consistently impressive results particularly from Hyundai and Kia electric cars.
Where the C40 is more impressive though is its charging specs, which are exactly where they need to be for a car this size. On a rapid DC charger, the C40 can charge at a rate of 150kW meaning a 10 - 80 percent charge in 40 minutes for the dual motor, or 32 minutes for the single motor.
On the slower AC standard, the C40 charges at a rate of 11kW. Expect a 10 - 80 percent charge time of around five or six hours on this standard.
The C40 uses a European-standard Type 2 CCS charging port, although it misses out on the handy two-way charging feature offered by some rivals.
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.
If you’ve driven any kind of XC40 or even a Polestar 2 before, the C40 will offer no surprises. It’s pretty much exactly the same from behind the wheel with a few subtle tweaks.
This is a very good thing. The C40 is quiet, easy to drive, and its electric motor and regen system offer a smooth single-pedal experience.
It is also alarmingly, overwhelmingly, rapid. While its massive set of batteries under the floor make it feel heavy off the line in stop-start traffic, sticking your boot into the accelerator will remove any doubt, particularly in the dual-motor variant, that this Volvo means business.
The dual-motor also has an incredible torque-vectoring system, making it extremely difficult to elicit so much as a squeak from its tyres. It also feels as though torque is distributed quite evenly between its two driven axles, making it feel neither prone to over- or understeer.
This has the effect of making the C40 feel somewhat indestructible in the corners, with absurd levels of grip.
The same feeling is present in top-spec versions of the Polestar 2, only the feeling of ever-present weight is more noticeable in the higher-riding C40, which can make it unsettling to take corners at the kinds of speeds it is capable of.
The steering tune is interesting. Volvo offers two software-controlled modes, either heavy or standard, and the standard mode is heavy enough.
Despite its electrical assistance, the wheel does continue to offer some organic feedback, making the C40 a pleasure to steer on countryside roads.
The ride is also surprisingly good, despite massive wheel options. I was impressed how easily the C40 handled most bumps and undulations, communicating little to the cabin.
The ride can approach its limits with such big wheels and the weight of its batteries, generally these are communicated via unsettling thuds from underneath the car. Regular undulations at higher speeds also had the C40 bouncing around a little.
On the whole, though, the cabin is kept relatively insulated and serene, adding an element of total confidence, similar to that offered by Teslas, whilst offering better ride quality with a softer edge. At higher speed, at least on the 20-inch wheels, road noise does pick up, however.
In terms of electric driving, there is a single adjustable setting for regen. The car either offers a full single pedal mode with maximum regenerative braking to bring the car to a halt with the motor alone, or a ‘standard’ mode which tones the regen down and offers it blended in via the brake pedal.
Single pedal mode is more efficient. I suggest you stick to it if you want to make the most of this car’s efficiency.
I was surprised to have so few complaints about the C40’s drive experience. This is a balanced and capable EV which is yet another example of how even vehicles which use combustion platforms are improved out of sight by full electrification.
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.
Sticking to its brand promise, Volvo offers the full range of active safety equipment on the C40 regardless of variant.
This includes freeway-speed auto emergency braking, rear auto braking, lane keep assist with lane departure warning, blind spot monitoring with rear cross-traffic alert, and one of the best adaptive cruise control systems on the market.
The only item the single motor misses out on is a 360-degree parking camera, which is exclusive to the dual motor variant.
It is notable how the adaptive cruise control, blind spot monitoring rear cross-traffic alert, and rear auto braking are on the options list for the Polestar 2.
These active systems combined with eight airbags (the standard dual front, side, and curtain, as well as a driver’s knee and centre airbag) make for a five-star ANCAP safety rating to the latest 2022 standards.
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 C40 is covered by Volvo’s five year and unlimited kilometre warranty, with a separate eight-year, 160,000km warranty for the battery. There is also eight years of roadside assistance attached.
It is pleasing to see the service intervals for the C40 are long, as they should be for an electric car with so few moving parts, set at two years or 30,000km.
The first 24 month service is free of charge, and Volvo tells us service pricing after this period will average out to around $100 a year ($200 per visit).