Tesla Model 3 2023: Australian price drops as much as $3100 as Hyundai Ioniq 6 looms

As a new wave of alluring electric vehicles flood into the Australian market, the trend-setting Tesla Model 3 has had a rare price reduction across the board

Tesla has decreased the price of its Tesla Model 3 sedan in Australia across all grades, with the range now kicking off at $63,900 before on-road costs amid an influx of new EV rivals into the Australian market.

Price decreases have also been made to the closely related Model Y midsize SUV after it finally arrived in Australia in June 2022.

The price of the Model 3 has been reduced on all grades for 2023

Tesla has dropped the price of the Model 3 by $1600 on the entry-level RWD grade ($63,900), $3100 on the Long Range AWD ($76,900) and $1700 on the Performance AWD ($89,900).

The changes are the latest in a series of significant price increases and decreases observed over the past few years, with the Model 3 starting from $67,900 before on-roads when it first went on sale locally in 2019.

However, the market for electric vehicles has broadened significantly since its introduction, with the Polestar 2 liftback and inbound Hyundai Ioniq 6 offering the most direct competition to the Tesla.

The Polestar 2 starts from $63,900 before on-road costs

In terms of price, the entry-level FWD Polestar 2 sits line-ball with the Model 3 RWD at $63,900 before on-road costs, while the Hyundai Ioniq 5 and Kia EV6 RWD midsize SUVs start at $72,000 and $72,590 respectively.

What does each grade of the Model 3 include?

Starting with the base, rear-wheel drive grade, the Model 3 is fitted with a 57.5kWh battery (usable size) that provides 491km of driving range, according to WLTP testing.

The rear-mounted motor provides 190kW/375Nm and the car is offered in a basic five-seat configuration across all grades, paired with a 649-litre boot capacity.

Tesla Model 3 Australia white review — The entry-level Model 3 boasts nearly 500km of range

Standard features include a 15.0-inch touchscreen, 18-inch alloy wheels, heated and 12-way adjustable electric front seats, heated rear seats, a heated steering wheel, a dual wireless phone charger, and power-folding mirrors.

Stepping up to the Model 3 Long Range switching to a 258kW/510Nm AWD setup with a larger 75kWh (usable) battery, providing 602km of driving range.

The larger battery also increases the maximum DC charging capacity from 170kW to 250kW, enough to add around 10-80 percent of capacity in around 27 minutes.

Tesla Model 3 driving Australia — The Model 3 comes standard with a 15-inch touchscreen

Buyers of the mid-spec grade also net an upgraded 14-speaker stereo system, LED front fog lights and interior floor mats.

The flagship Model 3 Performance lives up to its name by increasing the outputs to 335kW/638Nm, though the driving range drops to 547km.

Tesla also throws in performance suspension and brakes, Pirelli P-Zero tyres and aesthetic changes such as the carbon fibre spoiler and 20-inch wheels.