Tesla Model 3 and Model Y now the cheapest they have ever been in Australia

Electric-car specialist Tesla has today dropped the prices of its cheapest models to a new low in Australia – the third major price reduction in two months – amid a softening in electric-car demand in key markets.

The Tesla Model 3 now starts from $54,900 plus on-road costs (now less than $60,000 drive-away in most states and territories) – after a price cut of $4000.

The Tesla Model Y now starts from $55,900 plus on-road costs (now less than $61,000 drive-away in most states and territories) – after a price cut of $5000.

Both of these prices are the cheapest Tesla has sold these respective models for in Australia – and are up to $10,000 less than they were two months ago.

Tesla is trying to clear inventory here and overseas to keep its production lines moving amid a surge in cheaper electric-car rivals from China.

Tesla’s rapid price reduction will now force other brands to consider the price positions on their electric-car offerings, which is good news for all buyers.

A few weeks ago, Peugeot slashed $25,000 off the price of an electric car in runout, and Nissan slashed the price of the Leaf electric car by $18,000 for a limited time.

It remains to be seen if the Tesla line-up can limbo any lower.

The only downside of this recent price cut is that it will instantly put a dent on the resale values of vehicles that have been purchased at higher prices in the months and years prior.

While Tesla will not refund the price difference on any vehicles that have already been delivered, the savings will be passed on to anyone who ordered a car but is yet to take delivery.

The price changes are as follows below:

2024 Tesla Model 3 prices in Australia:

• Tesla Model 3 Rear-Wheel Drive – $54,900 (down $4000)
• Tesla Model 3 Long Range AWD – $64,900 (down $3000)
• Tesla Model 3 Performance AWD – $80,900 (unchanged)

2024 Tesla Model Y prices in Australia:

• Tesla Model Y Rear-Wheel Drive – $55,900 (down $5000)
• Tesla Model Y Long Range AWD – $69,900 (unchanged)
• Tesla Model Y Performance AWD – $82,900 (unchanged)

Above: Screenshots from the Tesla Australia website today, using NSW drive-away pricing as a guide.

Meanwhile, courtesy of Drive.com.au, below is a list of historical price changes on both models:

Tesla Model 3 price changes in Australia

Price change months (RRPs exclude on-road costs)	Tesla Model 3 RWD	Tesla Model 3 Long Range AWD	Tesla Model 3 Performance AWD
May 2019 (orders open)	$66,000	Not available	$88,104
July 2019 (launch)	$66,000	$87,842 (incl. LCT)	$98,624
December 2019	$67,900 (no change)	$89,469 (incl. LCT)	$99,869 (up 6.4 per cent)
July 2020	$73,900 (up 8.8 per cent)	$91,613 (up 2.4 per cent)	$102,013 (up 2.1 per cent)
October 2020	$66,900 (down 9.5 per cent)	$83,425 (down 8.9 per cent)	$92,425 (down 9.4 per cent)
April 2021	$62,900 (down 6.0 per cent)	$78,458 (down 6.0 per cent)	$94,058 (up 1.8 per cent)
July 2021	$59,900 (down 4.8 per cent)	$73,400 (down 6.4 per cent)	$86,472 (down 9.7 per cent)
Early March 2022	$60,900 (up 1.7 per cent)	$73,200 (down 0.3 per cent, December 2021)	$86,472 (unchanged)
15 March 2022	$63,900 (up 4.9 per cent)	$76,200 (up 4.1 per cent)	$91,672 (up 6.0 per cent)
17 June 2022	$65,500 (up 2.5 per cent)	$80,102 (up 5.1 per cent)	$95,276 (up 3.9 per cent)
6 January 2023	$63,900 (down 2.4 per cent)	$76,900 (down 4.0 per cent)	$91,395 (down 4.1 per cent)
10 February 2023	$64,300 (up 0.6 per cent)	$76,900 (unchanged)	$91,395 (unchanged; or $93,900 excl. LCT)
17 February 2023	$64,300 (unchanged)	$77,300 (up 0.5 per cent)	$91,915 (up 0.5 per cent; $94,300 excl. LCT)
4 April 2023	$60,900 (down 5.3 per cent)	$73,900 (down 4.4 per cent)	$88,269 (down 4 per cent including LCT)
2 May 2023	$61,300 (up 0.7 per cent)	$74,300 (up 0.5 per cent)	$90,355 (up 2.3 per cent including LCT; $87,300 excl. LCT)
1 July 2023	$57,400 (down 6.3 per cent)	$70,400 (down 5.2 per cent)	$83,400 (down 8.7 per cent vs June 30 price including LCT; now below LCT threshold)
1 September 2023	$61,900 (up 7.8 per cent)	$71,900 (up 2.1 per cent)	Not available
4 April 2024	$61,900	$70,900 (down 1.4 per cent)	Not available
23 April 2024	$58,900 (down 4.8 per cent)	$67,900 (down 4.2 per cent)	Not available
21 May 2024	$54,900 (down 6.8 per cent)	$64,900 (down 4.4 per cent)	$80,900 (returned 24 April 2024)

Tesla Model Y price changes in Australia

Price change months (RRPs exclude on-road costs)	Tesla Model Y RWD	Tesla Model Y Long Range AWD	Tesla Model Y Performance AWD
10 June 2022 (orders open)	$68,900	N/A	$93,900 (excl. LCT), $98,600 (incl. LCT)
17 June 2022 (one week after launch)	$72,300 (up 4.9 per cent)	N/A	$96,700 (excl. LCT), $101,612 (incl. LCT, up 3.0 per cent)
6 January 2023	$68,900 (down 4.7 per cent)	N/A	$94,900 (excl. LCT), $97,895 (incl. LCT, down 3.7 per cent)
10 February 2023	$69,300 (up 0.6 per cent)	N/A	$94,900 (excl. LCT), $97,895 (incl. LCT, unchanged)
17 February 2023	$69,300 (unchanged)	N/A	$95,300 (excl. LCT), $98,415 (incl. LCT, up 0.5 per cent)
4 April 2023	$68,900 (down 0.6 per cent)	$81,900 (new)	$94,900 (excl. LCT), $97,895 (incl. LCT, down 0.5 per cent)
2 May 2023	$69,300 (up 0.6 per cent)	$82,300 (up 0.5 pr cent)	$95,300 (excl. LCT), $98,415 (incl. LCT, up 0.5 per cent)
1 July 2023	$65,400 (down 5.6 per cent)	$78,400 (down 4.7 per cent)	$91,400 (excl. LCT), $92,020 (incl. LCT, down 6.5 per cent due in part to LCT changes)
4 April 2024	$63,900 (down 2.3 per cent)	$72,900 (down 7 per cent)	$82,900 (down 9.9 per cent, no longer hit with LCT)
23 April 2024	$60,900 (down 4.7 per cent)	$69,900 (down 4.1 per cent)	$82,900 (unchanged)
21 May 2024	$55,900 (down 8.2 per cent)	$69,900 (unchanged)	$82,900 (unchanged)

Prices listed above include Luxury Car Tax (where applicable) because it is industry practice to include LCT, however Tesla excludes it from its base prices. The RRPs listed above also exclude Tesla’s $1400 delivery fee and $400 ordering fee ($150 prior to December 2021), and exclude on-roads costs such as stamp duty, registration, and compulsory third-party insurance. Sources: RJ Pound, Redbook and Tesla.