Tesla Just Made a Big Promise About Model Y Pricing

Tesla is taking a refreshed approach to its pricing strategy in Australia, with a commitment to stable pricing as the refreshed Model Y prepares to hit local roads. As the electric vehicle (EV) market gets more competitive, particularly with an influx of Chinese brands, Tesla is looking to move away from its famously unpredictable pricing strategy.

According to Thom Drew, Tesla’s Country Director for Australia and New Zealand, the days of frequent price adjustments may be behind us. Speaking with Chasing Cars, Drew confirmed that Tesla intends to keep pricing steady for the upgraded Model Y, which has remained Australia’s best-selling EV.

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The End of Tesla’s Price War?

“We are certainly not going to get into price wars,” Drew stated. “I know we have famously been known for changing our prices rapidly over the past several years.

“I really think we have gotten to a point with our pricing where it is where it should be. Once we release the general production pricing for Model Y, I think we are at a really good point. Particularly with the refinements on the [upgraded] vehicle, it is exceptional value for money.”

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This shift marks a notable change in Tesla’s approach, as the brand has been known for aggressive price adjustments in response to market conditions. This has caused angst with existing customers, particularly fleet buyers who require price stability when making purchases.

However, with a stronghold in the Australian EV market, the company appears confident that a well-priced, high-quality Model Y can continue to dominate without frequent price drops.

Model Y Refresh: What Aussies Can Expect

Tesla’s updated Model Y will begin its first local deliveries in May, with the company ensuring large shipment volumes to meet the high demand. The much-anticipated rear-wheel-drive (RWD) Model Y Launch Edition has already sold out, but Drew confirmed that the standard version will be available soon.

For those still keen to secure a Model Y, Tesla’s Long Range, all-wheel-drive (AWD) variant is still available to order through its online configurator.

The Model Y’s success in Australia is undeniable. It was the country’s best-selling EV in 2024 and remains one of the most sought-after electric SUVs. Tesla’s strategy moving forward seems clear: keep the Model Y competitively priced, maintain strong supply, and continue enhancing the overall ownership experience to fend off rising competition.

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Chinese Competition and the Future of Tesla in Australia

Drew acknowledged that Chinese automakers are rapidly expanding into the Australian EV market, bringing more affordable options to consumers. However, he remains confident that Tesla can maintain its position at the top by focusing on product quality and customer experience.

“We need to make sure we are hyper-focused on the quality of our products and our competitiveness,” Drew explained. “[We need to] be looking around today and making sure that we have the best ownership experience to keep our brand at the number-one point.”

Despite growing competition, Tesla’s advantage remains its well-established infrastructure (Supercharger Network), software capabilities, and a loyal customer base. The Model Y’s continued affordability and strong feature set should help it hold off rivals for the foreseeable future.

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Could an Even Cheaper Model Y Be on the Way?

Tesla’s price stability in Australia comes at a time when reports from China suggest that an even more affordable version of the Model Y could be in development. If true, this could further strengthen Tesla’s grip on the market.

“At the moment, there is no cheaper model that I am aware of,” Drew said. “If there was one, absolutely [we would have our hand up].”

Australia’s EV market is unique due to its reliance on right-hand-drive (RHD) vehicles, which limits the number of international models available. Tesla’s Gigafactory in Shanghai supplies RHD markets, including Australia and New Zealand, ensuring a steady flow of new vehicles into the region.

▶️MORE: The Updated Tesla Model Y Just Launched And It’s Already Gone

Tesla officially launched the updated Model Y in China earlier this year, following months of speculation. Initial deliveries began last month, with the company transitioning to selling the standard edition in March. Australian deliveries will soon follow, marking the next chapter in Tesla’s dominance Down Under.

Final Thoughts

For Australian EV buyers, Tesla’s commitment to pricing stability is a welcome change. With the Model Y refresh set to arrive soon, the company is focusing on long-term competitiveness rather than short-term price battles. The move signals confidence in the Model Y’s value proposition, reinforcing Tesla’s leadership in Australia’s EV revolution.

With strong demand, a refined product, and a strategic shift in pricing philosophy, Tesla is positioning itself to maintain its position as Australia’s favourite EV brand.