Lexus IS350 vs Tesla Model 3

What's the difference?

The new-look Lexus IS takes several steps forward over its predecessor - it’s safer, smarter, sharper to look at and still pretty well priced and equipped.

It is feeling its age inside, and the competition has moved on in terms of engines and EV tech. But even so, if I was buying a 2021 Lexus IS, it would have to be the IS350 F Sport, which is just the most fitting version of this car, though the IS300h Luxury does have plenty to like for the money, too.

Tesla has done enough with the introduction of this Premium Long Range RWD variant to keep the Model 3’s head well and truly above water in an increasingly competitive segment. After more than six years it still looks good, with a pleasant cabin environment, plenty of performance and leading energy efficiency. Safety is top-shelf and it stands up well in terms of practicality and driving dynamics. 

That said, the ownership proposition is average, the determination to make so many functions screen-based is frustrating and the optional Full Self-Driving system is unconvincing. With the Model S and Model Y now discontinued globally it will be interesting to see how the Model 3 continues to evolve.

You either get the Lexus look or you don’t, and I think this latest version is possibly more agreeable than the IS in years gone by.

That’s partly because the brand has finally done away with the odd spider-eyes twin-section headlights and daytime running lights - now there are more traditional headlight clusters, which look a lot more resolved than before.

The front end still features a bold ‘spindle’ grille, which gets different treatment depending on the grade, and the front, to my eye, looks better than before but still very much stuck in its ways. 

At the side you’ll notice the giveaway windowline hasn’t changed, despite the chrome trim line having broadened as part of this facelift, but you can tell the haunches have muscled up a bit, with the new IS now 30mm wider overall, and the wheel sizes are 18s or 19s, depending on the grade.

The rear accentuates that width, with an L-shaped lighting signature now spanning the entire re-sculpted boot lid, giving the IS a pretty tidy rear end design.

Overall dimensions for the IS are 4710mm long, making it 30mm longer nose to tail (on an unchanged 2800mm wheelbase), while it now spreads across 1840mm (+30mm) and is 1435mm tall (+5mm).

The exterior changes really are impressive - I think it is a more purposeful but also more pleasant looking car now than it ever has been in this current generation. 

The interior? Well, there’s not a whole lot to talk about in terms of design changes, aside from the repositioned and larger media screen - which sits 150mm closer to the driver because it’s now a touchscreen with the latest smartphone mirroring tech. Otherwise it’s a carryover affair, as you can see from the interior pictures.

After four years in market, a heavily upgraded version of the Model 3 arrived in Australia in 2023, the biggest visual changes being a reshaped bonnet, aero massaged overall profile and angular slimline headlights.

The boot lid now incorporates a lip spoiler and the tail-lights were remodelled to create a truncated, two-layer effect. And in true Tesla fashion, the standard 18-inch alloy rims are fitted with matt black-finish aero elements filling the gaps between the satin black wheel spokes. Two new body colours - ‘Stealth Grey’ and ‘Ultra Red’ - were recently added to the available palette. For reference, our test car's finish is 'Quicksilver'. 

It’s still clearly recognisable as a Model 3, but these relatively minor design changes have helped the mid-sizer keep up with the slew of sleek newcomers it now faces.

The interior was also given a substantial makeover, the expansive 15.4-inch central display screen backgrounded by an all-new wrap-around dash and revised console treatment, the former featuring a raised insert and the latter a two-device wireless charging station.

Introduction of this Premium Long Range RWD model also brought the small but significant addition of a physical indicator stalk on the left-hand side of the steering column, replacing buttons on the steering wheel. Big ergonomic tick for that.

Customisable ambient lighting lifts the tone, soft materials look and feel good and the doorcards, bins and armrests have been reprofiled into a more sophisticated arrangement.

Our test car’s dark grey and white synthetic leather trim combination lifts the mood as does light from the huge, two-panel glass roof. But beware, while white trim looks dazzling on the showroom floor it takes some extra work to maintain its schmick appearance in the day-to-day grind.

After seven years in market the Model 3 has aged well and still looks sleek and contemporary.

The interior design of the IS, as mentioned, hasn’t changed dramatically, and it is starting to feel old compared to some of its contemporaries.

It’s still a nice place to be, with comfortable front seats with electric adjustment and heating across all grades, and cooling on many variants, too. 

The new 10.3-inch touchscreen media system is a nice unit, and means you can essentially do away with the silly trackpad system that still resides near the gear selector, so you may still end up bumping it accidentally. And the fact the IS now has Apple CarPlay and Android Auto (though neither are wirelessly connectable) does further its appeal on the multimedia front, as does the standard 10-speaker Pioneer stereo - though the 17-speaker Mark Levinson unit is an absolute blinder!

The centre stack below the media screen retains a CD player, and still has the electromagnetic temperature adjustment sliders as well. That part of the design is dating it just as much as the transmission tunnel console area, which looks a bit out of touch by modern standards, though still incorporates a pair of cup holders and a reasonably large centre console bin with soft armrest padding.

The front doors feature trenches with bottle holders as well, while in the rear doors there is still no drink storage - a carryover annoyance from the pre-facelift model. However, the middle seat in the back doubles as an armrest with pop-out cupholders, and there are rear air vents too.

Speaking of that middle seat, you wouldn’t want to sit in it for long, as it has a raised base and uncomfortable backrest, plus there’s a huge transmission tunnel intrusion eating into leg and foot space.

Outboard passengers also miss out on toe room, which - for my size 12s - is an issue. And it’s hardly the roomiest second row in this class for knee room and headroom, as my 182cm frame was a touch squished behind my own driving position.

Children will be better catered for in the back, and there are two ISOFIX anchorages and three top-tether attachment points for baby seats.

The boot capacity varies on the model you buy. Choose an IS300 or IS350 and you score 480 litres (VDA) of cargo capacity, while the IS300h has a battery pack that robs it of some boot space, with 450L available. 

At just over 4.7m long, more than 1.8m wide and a bit over 1.4m tall (with a 2875mm wheelbase) the Tesla Model 3 is a low-slung medium-size sedan. 

There’s plenty of space up front, a feeling enhanced by the standard panoramic glass roof and our test car’s white trim brightening up the cabin.

There are long, wide bins on the front doors with enough room for large bottles, a slim glove box (which opens only via an on-screen button, which is annoying) and a generous lidded storage box between the seats that doubles as a centre armrest.

The console houses two cupholders with another storage cubby ahead of them (both with sliding covers over the top) and the dual device wireless charging bay on the lower part of the dash under the media screen.

Switching to the rear, at 183cm I have a surprising amount of foot, leg and headroom when sitting behind the driver’s seat set to my position. The rear door aperture is surprisingly large which helps entry and egress.

Technically able to accommodate three passengers, the back seat is best for two full-size adults on anything other than a mid-length journey, although the flat rear floor helps ease pressure on the centre occupant.

There's a well-hidden fold-down centre armrest with cupholders, there are useful bins in the doors and hard shell map pockets on the front seatbacks.

The crisp 8.0-inch rear screen is a welcome entertainment option for back-seaters and there are adjustable air vents underneath it.

For power and connectivity there are two USB-C ports and a 12-volt socket in the front compartment, a USB-A in the glove box (mainly for dash cam and ‘Sentry Mode’ data storage) and two USB-C ports in the rear under the vents.

Boot space is a ample at 682 litres (the bootlid is adjustable for opening height) with an 88L ‘frunk’ in the nose. And if you need to tow a relatively light load like a box trailer or Jet Ski (or two) you can hook up a 1.0-tonne braked trailer (750kg unbraked).

While we understand it helps maximise battery space and reduce weight, we’re not on board with Tesla’s policy of providing a repair/inflator kit rather than a physical spare tyre. Even though this is likely to be a primarily urban cruiser, it’s not good enough. 

Then, there’s the Tesla app, an electronic Swiss Army Knife that facilitates everything from remote vehicle access and cabin ‘preconditioning’ to planning your route (complete with charging stops) and monitoring Sentry Mode (checking the vehicle’s surroundings and receiving alerts of potential threats).

The list of functions goes on and on, but suffice it to say the app is hugely handy. For example, ‘Dog Mode’ keeps the air con on with the car locked for the benefit of your four-legged friend and lets passers by know the doggo is safe via a bold message on the central screen. An internal camera, accessible via the app, lets you check-in remotely, too. Nice. 

Given its overall size and despite its conventional sedan configuration, the Tesla Model 3 offers efficient packaging and a heap of thoughtful features to enhance everyday practicality.

At $61,900, before on-road costs in NSW ($67,329, drive-away), the Tesla Model 3 Premium Long Range RWD sits in the same price ballpark as other pure-electric mid-size sedans like the BYD Seal Premium RWD ($58,798, BOC), Hyundai Ioniq 6 2WD ($67,300, BOC), MG IM5 Platinum RWD ($69,990, drive-away) and Polestar 2 Standard range Single motor ($62,400, BOC).

Broaden the consideration set to include medium EV SUVs and a dozen other options including the BYD Sealion 7, Kia EV5, Skoda Enyaq and Zeekr 7X enter the picture, many with a price-tag around $10K lower than the Model 3’s.

But price is one thing, value is another. Aside from the performance and safety tech we’ll get to shortly, let’s look at the Model 3 Premium Long Range RWD’s included features.

Standard spec highlights include LED exterior lighting, new design 18-inch alloy wheels, a 15.4-inch central display screen, synthetic leather seat trim, power-adjustable ventilated and heated front seats, tri-zone climate control, adaptive cruise control and nine-speaker audio.

There’s also ambient interior lighting, navigation (with real-time traffic updates), an 8.0-inch rear touchscreen for back seat climate and entertainment, a power boot lid, dual wireless phone chargers, surround parking sensors, keyless entry and start (plus a lot more through the Tesla app, which we’ll cover in the Practicality section) and 360-degree acoustic glass (including the standard glass roof). Still no Android Auto or Apple CarPlay, though.

Add in less obvious improvements like the extension of soft-touch materials throughout the cabin and this Model 3 stacks up well in terms of value relative to its cost-of-entry and direct competitors.

The engine specs depend on the powertrain you choose. And at a glance there’s no variance between the earlier version of the IS and the 2021 facelift.

That means the IS300 model still runs a 2.0-litre turbocharged petrol motor producing 180kW of power (at 5800rpm) and 350Nm of torque (at 1650-4400rpm). It has an eight-speed automatic transmission, and like all IS models, it is rear-wheel drive (RWD/2WD) - there is no all-wheel drive (AWD/4WD) model here.

Next up the spectrum is the IS300h model, which has a 2.5-litre four-cylinder Atkinson cycle petrol motor teamed to an electric motor and nickel metal hydride battery pack. The petrol engine is good for a 133kW (at 6000rpm) and 221Nm (at 4200-5400rpm), and the electric motor produces 105kW/300Nm - but the combined total maximum power output is 164kW, and Lexus doesn’t provide a maximum torque figure. The 300h model runs a CVT automatic transmission.

The big horsepower offering here is the IS350, which runs a 3.5-litre petrol V6 engine, producing 232kW of power (at 6600rpm) and 380Nm of torque (at 4800-4900rpm). It runs an eight-speed auto.

All models have paddle-shifters, while the two non-hybrid models have seen tweaks to the transmission software that is said to “estimate driver intentions” for better enjoyment. 

The Tesla Model 3 Premium Long Range RWD is powered by a single permanent magnet synchronous electric motor producing a handy 235kW and in excess of 400Nm.

It sends drive to the rear wheels only via a single-speed, direct-drive automatic transmission. 

Kerb weight is 1747kg and Tesla claims 0-100km/h acceleration in a rapid 5.2 seconds.

There’s still no diesel model, no plug-in hybrid and no full electric (EV) model - which means that while Lexus was at the forefront of electrification with its so-called “self-charging” hybrids, it is falling behind the times. You can get plug-in versions of the BMW 3 Series and Mercedes C-Class, and the Tesla Model 3 plays in this space in full-electric guise.

As for the fuel-sipping hero of this trio of powertrains, the IS300h is said to use 5.1 litres per 100 kilometres on the combined cycle fuel test. In reality, our test car’s dashboard showed 6.1L/100km across a mix of driving.

The IS300 with its turbocharged 2.0L engine is next best for fuel use, claiming 8.2L/100km. On our short launch drive of that model, we saw 9.6L/100km on the dashboard.

And the full-fat IS350 V6 petrol claims consumption of 9.5L/100km, while on test we saw 13.4L/100km.

The emissions for the three models are 191g/km (IS300), 217g/km (IS350) and 116g/km (IS300h). All three are Euro 6B compliant. 

Fuel tank capacity is 66 litres for all models, meaning your mileage range for the hybrid model could be considerably longer.

Tesla claims a WLTP range of up to 750km for the Model 3 Premium Long Range RWD, the official EV term for which is… a lot. 

As mentioned earlier, at the time of the car’s local launch in October last year Tesla claimed it as the longest-range EV in Australia and at the time of writing nothing had arrived to change that.

Unlike the standard Model 3, which is powered by a CATL-sourced LFP battery, the Long Range RWD is fitted with a lighter, more energy dense NMC pack from LG with a total capacity of 82kWh (78kWh usable).

In terms of energy consumption, Tesla claims 12.5kWh/100km on the combined (urban/extra-urban) cycle and on test we experimented with liberal use of the accelerator pedal, higher than average freeway running and keeping the car constantly chilled during extremely hot weather, which resulted in an average of 15.7kWh/100km. 

Aside from that, more typical stop-start urban driving with occasional use of the ‘Chill’ (eco-focused) mode brings the number down to 13.1kWh/100km.

That’s an impressive performance, with even the upper test figure more than acceptable for a 1.75-tonne electric sedan.

Capable of accepting a 250kW fast charge, Tesla says the Model 3 Long Range RWD can take on 311km of range in 15 minutes, at that speed.

On a 150kW pylon we saw capacity go from 15-85 per cent (theoretically, 600km of range) in roughly 50min, although the charger fluctuated below peak output throughout.

With the engine at the front and drive to the back, it has the ingredients for a pure driver’s car, and Lexus made a bit of a big deal about the new-look IS being more focused thanks to chassis adjustments and track width improvements - and it does feel a pretty nimble and tied-down car in the twisty stuff. 

It is competent at stitching together a series of corners, and the F Sport models are particularly adept. The adaptive suspension in those models includes both anti-dive and anti-squat tech, which is designed to make the car feel solid and flat on the road - and it does, thankfully without feeling twitchy or uncomfortable, with good suspension compliance even in the most aggressive Sport S+ drive mode.

The 19-inch wheels on F Sport models are fitted with Dunlop SP Sport Maxx rubber (235/40 front, 265/35 rear) and there’s plenty of tarmac tenacity.

The grip from Luxury-spec models on 18s could be better, with those Bridgestone Turanza tyres (235/45 all around) proving not quite the most enthralling. 

Indeed, the IS300h Luxury I drove felt very different in character to the F Sport IS300 and 350 models. It was surprising how much more of a plush-focused model the Luxury grade feels, and likewise it wasn’t as impressive in dynamic driving due to the tyre grip and less-enthusiastic drive mode system. The non-adaptive suspension is a touch more jittery too, and while it’s not to the point of discomfort, you might expect better for a car on 18s.  

Across all models the steering is accurate and direct enough, with predictable response and decent feel to the driver’s hands for this electric power steering setup. The F Sport models have even further retuned steering for “an even sportier drive experience”, though I found at times it could feel a little numb for rapid changes of direction. 

As for engines, the IS350 is still the pick. It has the best zest, and feels the most fitting powertrain for this model. It sounds good, too. The auto transmission is pretty clever, there's easily enough pulling power, and it's probably going to be the last of the non-turbo V6s in Lexus's line-up when this cars life-cycle is up.

The IS300's turbo engine was the most disappointing, lacking some urge and constantly feeling bogged down by turbo lag, transmission confusion, or both. It felt underdone in enthusiastic driving, though in dull day-to-day commuting circumstances it came across as more acceptable, though the remapped transmission software was far less impressive in this application than in the IS350.

The IS300h was a lovely, quiet and refined experience all around. It’s the one you should go for if you don’t really care about all that go-fast stuff. The powertrain is proven, it accelerates with nice linear delivery, and at times it’s so hushed I found myself looking down at the instrument cluster to see if the car was in EV mode or if it was using the petrol engine. 

So, surprise, surprise, the Tesla Model 3 Premium Long Range RWD is quiet. But it’s quiet, even in the context of other EVs in this part of the market.

That’s thanks in part to acoustic glass in the front, rear and side windows as well as the dual-pane glass roof and the Bridgestone Turanza T005 EV tyres (235/45x18) featuring ‘B-Silent’ technology. Corny, but it works.

A kerb weight under 1.8 tonnes is relatively lightweight for an EV of this size and the Model 3 RWD is quick with 0-100km/h acceleration in a fraction over five seconds. There’s always plenty of pulling power under your right foot. 

Suspension is double wishbone front, multi-link rear and ride comfort is respectable rather than exceptional. Smaller bumps and irregularities find their way into the cabin but never to an alarming degree.

Steering sits in the middle-of-the-road between tactile and wooden, which is par for the EV course, although it's accurate and pleasingly progressive. Body roll, even in enthusiastic cornering, is modest. 

The physical brakes are ventilated discs front and rear although they don’t come into play all that often because the Model 3’s regenerative braking system is so good. Single-pedal operation soon becomes the norm. 

Our test car’s optional ‘Full Self-Driving (Supervised)’ will set you back $10,100 as a one-off payment, or $149 per month and Tesla says when using it, “Under your supervision, your car will be able to drive itself almost anywhere with minimal driver intervention”.

We engaged it for a 30km trip through suburbia, across the Sydney Harbour Bridge and into the city’s inner south. 

A rainbow-coloured magic carpet in front of the car graphic on the nav map tells you the system is engaged and although things went smoothly at first we soon sliced a bit off the inner oncoming lane as we turned right at a T-intersection, which was alarming. 

The system also has a consistent tendency to stick to the far right-hand side of the lane, stay five to 10km/h under the signposted speed limit and it continued to operate without my hands on the wheel, although I kept them there for 99.9 per cent of the drive (which is tiring when you’re not doing the steering).

Having been squeezed to the point where we couldn’t merge safely into a particular arterial road the nav took us on what’s known in the trade as a wild goose chase that had to be nipped in the bud. If I hadn’t known my way around it could have been a huge waste of time and (vehicle) energy. As much a nav issue as an FSD one, but overall, let’s just say, I’m not convinced.

Under the heading of miscellaneous observations, I’m not a fan of the on-screen gear position slider in place of a physical control. It’s needlessly fussy, although its ability to automatically switch between D to R (and back) during slow-speed manoeuvres is helpful. 

The software behind the car’s multitude of functions is exceptionally good, as is the ability to swipe in the vicinity of the temp and audio volume screen sliders, rather than having to hit them bang on and the blind-spot camera view which pops up on the screen when indicating on either side is handy.

The Model 3 has a maximum five-star ANCAP rating from assessment in 2025, with outstanding scores across the independent body’s four key pillars: Adult Occupant Protection - 90 per cent, Child Occupant Protection - 95 per cent, Vulnerable Road User Protection - 89 per cent and Safety Assist - 88 per cent. Wow.

Active (crash avoidance) safety ticks a heap of boxes including AEB (operational from one to 150km/h with forward collision warning covering cars, cyclists, pedestrians and motorcycles) as well as rear AEB, lane keeping assist (car-to-car and car-to-motorcycle), lane departure warning, blind-spot monitoring, a 360-degree camera view, driver fatigue detection and more. None of them are overly intrusive in operation.

The airbag count runs to seven - front head and front side as well as full-length curtains, and a front centre bag to minimise head clash injuries between driver and co-pilot in a side collision. There’s also multi-collision brake (to reduce the chances of subsequent impacts after an initial crash).

For baby capsules or child seats there are three top-tether points across the second row with ISOFIX anchors on the two outer positions.

A super-impressive safety package that matches or betters anything in the category.

Worth noting our test car features Tesla’s ‘Full Self-Driving (Supervised)’ functionality which we’re positioning as a convenience feature rather than an outright safety factor. So, its performance is covered in the Driving section.

On paper, Lexus’s ownership offer isn’t quite as enticing as some other luxury car brands - but it has a strong reputation for blissful ownership.

The Lexus Australia warranty period is four years/100,000km, which is better for duration than Audi and BMW (both three years/unlimited km) but not as accommodating as Mercedes-Benz or Genesis, each of which offer five-year/unlimited km warranty.

The company has a three-year capped price servicing plan, with maintenance every 12 months or 15,000km. The first three visits cost $495 each. That’s okay - but Lexus doesn’t offer free servicing like Genesis, and nor does it offer prepaid service plans - for three to five years for a C-Class, and five years for Audi A4/A5, for instance.

There is complimentary roadside assistance for the first three years, too.

That said, the company has its Encore ownership benefits program that allows a number of experiences and deals, and the service team will collect your car and return it, leaving you with a loan car if you need it.

From January 1, 2026 all new Teslas sold in Australia have been covered by a five-year, unlimited kilometre warranty (including roadside assistance for the duration), up from four years/80,000km, previously.

A big step forward, no doubt, but that just gets Tesla to a base, mainstream market level with a dozen brands now at seven years, several at eight and three at 10 years (conditional).

The drive battery is covered for eight years/192,000km, which is in line with the category norm. And a Body Rust Limited Warranty covers rust perforation for 12 years, unlimited kilometres, which is reassuring.

Tesla servicing is condition-based, so there’s no fixed schedule, with a summary on the car’s touchscreen providing a record of when vehicle maintenance was last carried out and prompts for when they should be performed next.

In the absence of a combustion powertrain the emphasis is on things like wheel rotation, balancing and alignment, brake fluid testing, air-con servicing, camera precision, radiator cleaning and high-voltage battery maintenance.

Theoretically, if a workshop visit is flagged in the car’s system, it could include actions like a ‘Vehicle Health Check’ ($270), ‘General Diagnosis’ (270 per hour), brake fluid flush ($240.80) and replacement of both cabin air filters ($106.60).

Things like air-con desiccant bag replacement ($89.18), tyre rotation ($81.00), a wheels check - if tyre wear is abnormal ($81) and a wheel alignment ($225) are also set inspection and service items. All prices exclusive of GST.

In the States, the brand provides a range of estimated annual service pricing of between US$257 - US$499 ($367-$712), based on data collected by car buying specialist CarEdge. The suggested service range is around 20,000km and the first five annual estimates are at US$300 ($430) or less.

Tesla has 25 stores in Australia, not surprisingly covering mainly urban and larger regional centres, including four each in Melbourne and Sydney, three in Canberra, two each in Adelaide, Brisbane and Perth as well as one in Hobart.