Big electric car discounts! Tesla cuts prices for its popular 2023 Model 3 sedan and Model Y SUV as EV competition heats up

Tesla has tweaked the pricing for its two key mainstream cars, the Model 3, and Model Y, as competition starts to bring the heat in the entry-level EV segment.

Model 3 prices have been slashed several thousand dollars, with the most popular base Rear-Wheel Drive variant now starting from $63,900 before on-road costs, down from its previous price of $65,500.

The mid-spec Long Range variant is also down to $76,500 down from $80,000, and the top-spec Performance has also dropped from $96,305 to $89,900.

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According to the Tesla configurator, wait times for the Model 3 have also dropped below six months, with estimated deliveries for orders now happening between February and May (a one- to four-month delivery window).

Meanwhile, the Model Y SUV has also had its prices adjusted down, with the base Rear Wheel Drive now costing $68,900 before on-roads, down from its previous price of $72,300, while the top-spec Performance grade slips below the $100,000 mark, with its new price set at $94,900, down from $100,235. Deliveries for the Y should also take place in a one- to four-month window.

Several options, including the premium red paint option, ‘Induction’ 20-inch wheels on the Model Y, and ‘Sport’ 19-inch wheels on the Model 3 have also received a discount to the order of several hundred dollars each, although Tesla’s delivery fee has gone up $25 to $1400, and its order fee is also up $50 to $400.

CarsGuide understands discounts will be passed on to customers with existing orders. The base Model 3 Rear Wheel Drive also attracts a $3000 rebate in New South Wales, Victoria, and South Australia, or a $3500 rebate in Western Australia, as well as a stamp duty waiver or discount in the ACT, Tasmania, and Queensland. 

The Model 3’s primary rival - the Polestar 2 can be had at a matching price-tag of $63,900 before on-roads for its base Standard Range Single Motor, although it requires option packs to be ticked to match the Tesla’s level of equipment.

The Model Y RWD now costs ,900 before on-roads.

The 3 and Y face increased competition at the entry point of the market with the arrival of the BYD Atto 3 (From $48,011 before on-roads), as well as the imminent arrival of the MG4 hatchback and Volkswagen ID.4 mid-size SUV.

Elsewhere in the Tesla range, the significantly updated Model S sedan and Model X SUV are still yet to receive delivery timing or pricing in Australia, although the brand has added the option to swap the controversial ‘Yoke’ steering wheel out for a standard wheel. Both of the brand’s larger models will arrive with two variants - a standard dual motor all-wheel drive variant with more range, and a performance-oriented tri-motor Plaid variant.

The Model S can be chosen with two wheel options and the addition of a cream interior (over the black or white interior options available on the 3 and Y), while the Model X can be chosen with five-, six-, or seven-seat layouts. The brand is currently taking refundable $350 deposits for both cars.

Finally, it is predicted that a major Model 3 update is due some time in 2023, following in the footsteps of the updated Model S and X. Industry insiders claim the updated model will come with a reduction in production costs and include several upgrades to the interior and tweaks to the exterior design. Information shared with industry source Automotive News claims the updated model will start production in Q3 of 2023.