Tesla is gearing up to fight off a new wave of Chinese electric cars, with big updates to its range.
The fully-electric Model 3 sedan and Model Y SUV will feature a suite of upgrades and price cuts as they fight off increasingly competitive Chinese rivals Down Under.
The Model Y’s top-spec ‘Performance’ grade now starts from $84,900, down from $89,400 (before on-road costs).
The Model 3 is now cheaper as well, starting from $45,900 instead of $54,900, before on-road costs.
Tesla said both updated cars can be configured on its website.
2026 Tesla Model Y now faster
Tesla's Model Y is the best-selling electric car globally, with Aussie buyers gaining access to improved performance.
The Model Y’s long-range all-wheel-drive grade squeezes more performance out of its dual electric motors, and can now sprint from 0-100km/h in 4.3 seconds, down from 4.8 seconds.
This is faster than lower grades of the Zeekr 7X ($57,900) that accelerate from 0-100km/h in 6.0 seconds.
The Model Y L three-row SUV is also now quicker from a standing start. Acceleration from 0-100km/h takes 4.5 seconds, instead of 5.0 seconds.
The Model Y will be offered with a new Glacier Blue paint colour and a grey interior colour option.
2026 Tesla Model 3 gets boost to driving range and tech inside
The Model 3’s price cut complements a larger 16.0-inch first-row touchscreen, up from the 15.4-inch unit previously installed, and matching the Model Y.
The range-topping Tesla Model 3 Performance has an improved driving range figure of 600km, which is 29km more than before, according to WLTP standards.
The car also receives a dark headliner, and the Zen grey interior option, as well as new 19-inch wheels.
Tesla’s Model 3 has had a slower sales return in 2026 compared to its Model Y SUV sibling, batting for buyer attention with the strong-selling BYD Seal ($52,990).
2026 Tesla Model 3 and Model Y gain vehicle-to-load functionality
Both cars are equipped with Tesla’s ‘Power Share’ vehicle-to-load system that allows for owners to power appliances and tools directly from the high-voltage battery.
Tesla cars in Australia previously did not have vehicle-to-load functionality, but this latest update brings them into line with other key mainstream EV rivals.
The brand also confirmed older examples cannot be retrofitted with the Power Share technology.
