Why Tesla needs help | Opinion

If there is one word to describe the Australian car industry in 2026, it’s diversity.

More than 70 brands will compete against each other and almost every one of them will be offering a diverse array of models.

Read more about Tesla

• Is this the cheap Tesla we were promised?
• Uh-oh: Bad news for Tesla and Musk
• Tesla Model Y 2025 review: Long Range AWD

Tesla’s 2026 line-up — the Model 3 sedan and Model Y SUV — will be the same as it was in ‘25 and ‘24 and ‘23 and all the way back to 2020, when the final Model S and Model X were delivered.

The company teased the idea of bringing back its bigger, more expensive options, but ultimately conceded defeat and stopped taking orders for a car not sold here in 2023. Which has left the Model 3 and Y to carry the flag for the brand.

And they have carried it well, not just for Tesla, but the duo have become the most popular electric vehicles in this country. Tesla is the biggest EV brand in the country and the updated 3 and Y have helped keep it that way.

But offering two options inevitably means you will run out of people interested in those two models. Toyota sells more cars than anyone else because it has one of the biggest line-ups, offering everything from a Yaris Cross to a LandCruiser 300 Series with a GR86 and HiAce van in between.

Car companies can survive, and even thrive with a limited range, Ford arguably has a two model line-up, with the Ranger and Everest accounting for approximately 90 per cent of its total volume… but ultimately it also does have the Mustang and Transit and others.

The real problem for Tesla is its sales were down nearly 25 per cent in 2025, despite the arrival of the updated Model Y, which should have been a boost.

It could be a sign that Tesla is simply running out of potential customers, buyers looking for a mid-size electric sedan or SUV. At the end of the day, those two vehicle types simply do not suit every new car buyer in Australia.

The other challenge is the increasing number of competitors, particularly those from China (where Australian-sold Teslas are made), with the likes of the BYD Sealion 7, BYD Seal, Geely EX5 and others offering better value alternatives. Or, even just something different, if you’ve already owned a Model 3 or Y, even the ‘facelifted’ option doesn’t really offer dramatic change.

As we’ve spent this summer looking at the missing piece in several big name brands product portfolios, the thing that stands out about Tesla is the amount of missing pieces. Having two models is simply leaving out so much market potential.

There continues to be whispers about the possible introduction of the Cybertruck. Assuming it can even be offered here, it would likely be a very niche product - as it has ended up being in the US.

There has been discussion of a cheaper Model 2 for years, but it’s unlikely to come anytime soon, with the company instead focused on its Robotaxi business in the US.

Which will leave Tesla Australia to fight on with the Model 3 and Model Y, and unless they get any back-up, sales are likely to stagnate in ‘26 and possibly beyond as the brand is simply missing too much of the market.