A recent Tesla press release has confirmed the brand will not introduce cut-price variants of its Model 3 sedan and Model Y medium SUV to Australia, despite an influx of cheaper rivals from China.
Tesla confirmed that much of the Model 3 and Model Y range will be renamed in Australia, with RWD and Long-Range RWD variants now adjoined with the title ‘Premium’, to align local models with those sold overseas.
Pictured: 2026 Tesla Model Y Performance
Prices, equipment, driving ranges and warranty for the renamed RWD and Long-Range RWD Model 3 and Model Y remain unchanged.
While initially appearing to be Tesla’s first step toward introducing cheaper models, one subtle sentence effectively crushed the prospect.
“While Standard Models have been released in other regions, this model will not be available for Tesla Australia & New Zealand,” the statement read.
Pictured: 2026 Tesla Model Y Performance
Tesla’s ‘Standard Models’ are defined by their reduced driving range, smaller batteries, slimmer feature set and a sharper introductory price. Both the Tesla Model Y and Model 3 are offered in Standard guise in other right-hook markets like the UK.
That market sees Standard Models start around 15-percent cheaper than the introductory Premium Models. If this flat-rate discount was applied in Australia, the Model 3 would have an entry price from ~$46,700 before on-road costs, and the Model Y from ~$50,000.
Pictured: 2026 Tesla Model 3 Premium Long Range AWD
Pictured: 2026 Tesla Model 3 Premium Long Range AWD
There has long been speculation in the Australian market that cheaper, more basic Tesla models would soon be introduced in an effort to secure sales against new rivals like the Zeekr 7x, BYD Sealion 7, BYD Seal, and Xpeng G6.
Cheaper Tesla variants would also serve as a leg-up against legacy brand offerings like the Skoda Enyaq, BMW i4, and Kia EV5.
Tesla Model 3 2026: prices in Australia
All prices listed are before on-road costs.
- Premium Rear-Wheel Drive: $54,900
- Premium Long Range All-Wheel Drive: $61,900
- Performance All-Wheel Drive: $80,900
Tesla Model Y 2026: prices in Australia
All prices listed are before on-road costs.
- Premium Rear-Wheel Drive: $58,900
- Premium Long Range All-Wheel Drive: $68,900
- Performance All-Wheel Drive: $89,400
