Browse over 9,000 car reviews

Well, that didn't last long! 2023 Tesla Model Y price hike makes it more expensive than Hyundai Ioniq 5, as Model 3 also increases in cost

The Tesla Model Y is up to $3400 more expensive than when pricing was first announced just weeks ago.

After opening its order books just last week, Tesla Australia has increased the prices of its Model Y electric SUV by as much as $3400.

That’s right, if you didn’t place an order for the base Model Y in the seven days after pricing was announced, you won’t be paying $68,900 before on-road costs to get into the all-electric SUV anymore, you’ll have to fork over $72,300.

This makes the Model Y now more expensive than the Hyundai Ioniq 5 ($71,900), as well the Kia EV6 ($67,990).

The top-spec Model Y Performance has also jumped up in cost, up $2800 to $96,700.

So, what justifies the price rise so soon after prices were first announced?

It’s not more equipment or an increase to performance, but a price rise across Tesla’s global product portfolio that has carried through to Australia.

Tesla boss Elon Musk has pointed to ongoing material supply issues for previous price changes, but the rising cost of logistics and inflation also has an effect.

As such, the Model Y isn’t the only Tesla model getting more expensive, as the related Model 3 has also jumped up by as much as $3800.

The base Model 3 is now $65,600 (+$1600), while the Long Range and Performance are $80,000 (+$3800) and $91,600 (+$2700) respectively.

This is the third time the Model 3 has risen in price this year, while the entry-level sedan has been nearly $10,000 cheaper before at $66,900 in late 2020.

Wait times for both models are also blowing out as electric cars gain traction in Australia, with both models regardless of grade having an expected delivery window between February and May, 2023.

2023 Tesla Model Y pricing before on-road costs

Model YAutomatic$72,300 (+$3400)
PerformanceAutomatic$96,700 (+$2800)

2022 Tesla Model 3 pricing before on-road costs

Model 3Automatic$65,600 (+$1600)
Long RangeAutomatic$80,000 (+$3800)
PerformanceAutomatic$91,600 (+$2700)