What's the difference?
In 15 years as a car reviewer there have been plenty of super luxurious cars and there has been plenty of people moving. But not many super luxurious people movers. Until now. Until the Lexus LM 500h.
This people mover costs a quarter of a million dollars. And if that caught your attention you probably also want to know what that buys you. My family and I found out when we lived with the LM 500h Ultra Luxury for a week.
I don’t think I’m overselling it to say that this is the car that could make or break Tesla in Australia and around the world.
Crazy, right? That seemed impossible not so long ago, back when the brand appeared untouchable. But new competition, largely from China, plus the giant Musk-shaped elefant (it is German for elephant…) in the room, has seen sales and profit plummet.
Just last month, for example, the Tesla Model Y lost its best-seller crown in Australia to BYD, admittedly in the weeks before the new 'Juniper' version arrived.
The point is, a new version of its biggest seller is a Very Big Deal. But have they changed enough, and changed it well enough, to cut through the noise?
We put the cheapest variant, the Tesla Model Y RWD, to the test to find out.
The Lexus LM 500h is luxurious, comfortable, practical, easy to drive and expensive. While it may appear to be the ultimate family car, with only four seats it's limited in terms of how many kids and their friends you can carry. On top of that, the privacy screen introduces accessibility issues to the kids you wouldn't encounter on other vehicles. If you are thinking of a Lexus people mover as your next family car I'd suggest looking at the LM 350h which has seven seats and no privacy screen. If you’re looking at a business class executive van the LM 500h would be perfect.
Tesla promised wholesale improvements to the Model Y, and this Juniper update delivers where it counts. But with increased, and sometimes cheaper, competition arriving every day, the pressure remains on Tesla to keep the Model Y ahead of the pack.
The LM 500h doesn't look real. More like a concept vehicle with its vertical face wearing that enormous grille. Feels like if you watched it for long enough you’d catch it transforming into some kind of robot. Yet, at the same time its styling is elegant and prestigious.
I have a confession to make. I used this Lexus as my office. Its interior is that comfortable and spacious. I'm also a parent and there were times where it was the quietest place to get some work done.
It also let me observe people's reactions as they walked past with their dogs not knowing what was going on inside behind those tinted windows. The people that noticed were clearly car enthusiasts as they knew what they were looking at and couldn't pass without gaping it awe.
The LM 500h’s interior is superbly plush with thick carpets, beautiful copper metallic trim and nappa leather seats.
As I’ve said, the cockpit up front is less luxurious than the extravagant first class section in the back behind that dividing wall.
And yes, I’ve seen large screens before but nothing that stretches the width of the vehicle.
We’re not talking massive changes here – more a modernising of the Model Y offering that doesn’t really change the shape or dimensions.
The most noticeable changes outside are the front and rear light bars, spanning the width of both the bonnet and the boot. They’re a nice touch, and seriously soften what many (including me) consider the worst angles of the Model Y. There are also new headlights, a refreshed front bumper and a new look for the alloy wheels.
Inside, it is the absolute definition of pared-back minimalism. In fact, some could argue it’s gone a little bit too far.
There are no physical buttons anywhere but on the steering wheel, and there's just the one stalk, which has the sole function of operating the indicators. Everything else - mirrors, windscreen wipers, headlights etc - are accessed either through the steering wheel, or through the central screen.
And that includes the gear selector, which is now a swipe-down-for-reverse, swipe-up-for-drive function on the central screen. You might love that, but I don't. I'm sure I'd get more used to it, but initially it did nothing but slow down how quickly I could get the car moving.
Helpfully, the central screen is big and very easy use, and logging into Spotify and Apple CarPlay does largely negate the missing phone mirroring – though if the function exists, I couldn't get it to read my incoming texts to me.
Our test car's cabin was black but highlighted with quality-feeling fabric panels in the doors and on the dash, which are then framed by a metallic-feeling mesh, helping the Model Y's cabin feel definitely elevated from the vehicles that came before it.
You might be able to take Lexus out of Toyota but it's very hard to take Toyota out of Lexus and this particularly applies to the practicality of the LM 500h.
Every day I discovered new compartments, tray tables and storage areas. There are so many cabinets, lockers and hidey holes that we almost left my belongings (an entire family of plushie toy capybaras) behind because there are so many places to check.
Of course, I'm talking about the rear compartment here because up front there's not much storage. In fact, it proved to be quite a problem in that I had nowhere to put my bag with somebody sitting next to me and no area behind the front seats to stow it, either.
Talking of seats, the LM 500h only has four of them, with two up front and two in the rear. Up front, the seats are supportive and large, but the rear seats - those are, well... have a look at the images.
We’re talking two large captain's chairs that look as though they’ve been removed from the first class section of a plane.
And while this might be suitable for businesses shuttling a couple of executives to and from meetings, for a family, even with two children, the extra couple of seats a third row offers would come in handy.
The LM 350h has seven seats over three rows and no privacy screen. A far better choice for families.
For device charging there are USB ports up front and in the rear. There are wireless phone chargers for those in the back seats but not up front.
The LM 500h has a cargo capacity of 752 litres with all seats in place.
The new Model Y stretches 4792mm long, 1982mm wide and 1624mm tall, and the practicality perks of the outgoing model still shine strongly in this new version.
Climb into the backseat and you’ll find a seriously spacious area, and one that feels even bigger and lighter thanks to the completely flat floor and the glass roof.
Even sitting behind my own 175cm driving position, there was ample knee and headroom, and the addition of the 8.0-inch rear screen, which supports two headphone connections, is a clever touch. Gone are the mind-numbing days of staring out the window on long family road trips. Now, kids get access to YouTube, Netflix and a heap of games.
There are also two USB charge points, and a pull-down divider that separates the comfortable rear seats. The door pockets front and rear are sizeable, and cabin storage abounds, including a hugely deep storage bin that separates the front seats.
Open the boot, and remove the shade, and you'll find another fairly massive storage area, including a deep hidden area under the boot floor. But you won't find a spare tyre – instead Tesla offers a 24-hour call-out service for the life of the warranty, where someone will come and repair or replace your tyre, should you have an issue.
Tesla isn't good at detailing specifics about its vehicles, but says you can expect a total 2138 litres of storage space in the Model Y, presumably with the rear seats folded flat and measured to the ceiling.
The Lexus LM 500h sits at the top of its range and is without a doubt one of the most expensive people movers on Earth with its list price of $220,888.
As you would imagine the standard features list is as extensive as it is extravagant.
For starters, while the regular LM 350h has two rows of seating in the rear (seven seats all up, including the front two), the 500h has the third row removed and just two super luxurious and enormous fully reclining seats fill the entire space. It’s like a theatre back there.
That theatre theme keeps going with a media screen in the back so large it stretches the width of the vehicle. Seriously, it's a 48-inch screen to watch movies or connect to your device.
The sound system is probably the best I’ve experienced - a spine tinglingly incredible 23-speaker Mark Levinson set-up.
What else can I tell you? Those rear seats are upholstered in beautifully soft semi-aniline leather. They’re heated and ventilated with a massaging function and... ridiculously comfortable.
There’s four-zone climate control, windows which have an electronic shade that turns the glass opaque, there are wireless phone chargers in the doors and carpet throughout so thick you sink down into it as you step inside.
Our LM 500h was upholstered in the 'Solis White' leather which also brings contrasting and mesmerising copper metallic trim.
Oh, and there’s a wall with an electric glass screen that can be raised or lowered to separate the rear passengers from the driver.
I should have mentioned this earlier. The kids loved it, but these parents spent a lot of time telling the 10- and three-year old not to put the screen up again.
The rear occupants, aka the kids, can also lock the screen in place. Which they did, and so sound proof is the dividing wall that we can only just hear their uproarious laughter.
Up front, the cockpit is comfortable but it’s clear all the space and luxury is for those being driven around.
Still, the front seats are leather with heating and ventilation, there’s a 14-inch media screen and 12.4-inch digital instrument cluster, plus a head-up display. Sat nav, Apple CarPlay and Android Auto are also standard.
So yes, this Model Y RWD is the cheapest way into the Model Y family, listing at $58,900 before on-road costs – exactly $10k cheaper than the Long Range All-Wheel Drive.
That’s a little more than some of its core Chinese rivals, like the XPeng G6 which kicks off at $54,800, and a lot more than vehicles like the Leapmotor C10 and Geely EX5. But you could argue that Tesla has more brand standing than them in Australia, given it has been around for so much longer.
Tesla has also jacked up the included features for this update, with heating and cooling for the front seats, new 19-inch alloy wheel designs, adaptive LED headlights, and a very cool 8.0-inch rear screen that gives backseat riders access to games, YouTube and Netflix.
Tech up front is handled by a 15.4-inch central screen on which you can connect your Spotify or Apple accounts, but there’s no Apple CarPlay and Android Auto. The system pairs with a nine-speaker stereo, and there’s still the best wireless charging pad in the business below the screen.
The LM 500h is a petrol-electric hybrid with a 2.4-litre four-cylinder turbo-petrol engine which makes 202kW/460Nm and works in concert with two electric motors.
The front motor makes 64kW/292Nm and the rear makes 76kW/169Nm. The combined maximum power output of the two motors and the petrol engine is 273kW.
The LM 500h is all wheel-drive and has a six-speed automatic transmission.
Again, Tesla keeps its cards close to its chest on specific outputs, but data we've seen points to this Tesla's rear-mounted electric motor producing 255kW, a smallish increase from the 220kW of the outgoing model.
Tesla says that's enough to produce a sprint to 100km/h time of 5.9 seconds.
Lexus says after a combination of urban and open roads the LM 500h should use 6.6L/100km. In our own testing we found consumption was higher at 9.4L/100km.
Worth noting my driving environment was mainly a hilly suburban one filled with school drop offs. Achieved some personal bests this week, with one long run to Sydney’s outskirts, only to return in nightmarish peak hour traffic.
Premium (95 RON) fuel is required and the tank size is 60 litres. In theory the driving range is a smidge more than 900km, which drops to around 640km using our real-world average.
Again, more cloak and dagger from Tesla here, but most reporting suggests a 75kWh battery is housed beneath the new Model Y.
We do know that our rear-drive Model Y will deliver a claimed 466km driving range on the WLTP cycle.
Charging is capped at a reported 220kW, with the brand suggesting 238km in driving range can be added in 15 minutes when using a 175kW Supercharger. Home AC charging is capped at 11kW.
Quite simply, driving the LM 500h is like piloting a limousine on stilts. Superbly comfortable, but with an elevated driving position that offers outstanding forward and side visibility, the LM 500h is an easy vehicle to drive for long periods of time.
A digital rear vision mirror means visibility behind is good and unobstructed by the privacy screen or the seats.
The drawbacks are down to the lack of space up front, with the driver’s chair limited in its ability to recline or slide back due to the bulkhead behind it.
And that's compounded by the lack of cabin storage for bags if the front passenger seat is taken.
As for the rear passengers there aren't many people movers offering this level of comfort, except perhaps the Zeekr 009.
Variable suspension that adjusts continuously keeps the vehicle composed and provides a high level of comfort for those in the rear. At the same time, the LM stays nice and flat through roundabouts while remaining civilised over speed bumps.
And then there's the acceleration, which, while not supercar-like is incredibly brisk for a van. The all-wheel drive system provides outstanding traction in wet and slippery conditions, too.
Our family used the LM daily for everything from school runs to shopping trips and weekends away and not only was it fun to drive, our lucky rear passengers enjoyed sitting high and being able to see clearly out their windows along with the luxury of a giant movie screen.
Reviewing a Tesla Model Y at the moment is no mean feat. The company's very public figurehead is fighting for a front-row grid position in the battle for world's most unlikeable human at the moment.
But anyway, journalist hat on, personal views aside, Tesla has done a good job with the new Model Y. I actually didn't much like the outgoing model – the ride was too harsh, the steering too darty and the cabin too austere – but Tesla has comprehensively overhauled each of those drawbacks to create a car that is genuinely much better than it has ever been before.
Let's start with the cabin. It's still austere, but the quality feels higher and more premium, and while I'll die on a hill of the screen-controlled drive selector being a bad idea, it is otherwise now a nice place to spend time. The screen and the software powering it largely replace the perks of Apple CarPlay, and the addition of the rear screen is a very good one, too.
But the biggest improvements are in the way the Model Y drives. It's far more compliant on Sydney roads, while the steering sensitivity has been dialled back so it doesn't feel as though you're constantly making corrections.
I also like the power delivery in the RWD. It's not lightning fast, but the grunt is constant and feels really instantaneous and usable.
It's no sports car, though. Our test car took in some of the windiest roads in greater Sydney and beyond, and while the body roll and composure feels on point, the Model Y does struggle with really sharp cornering. The aggressive traction control was a constant passenger on the really challenging stuff.
Overall, the improvements are good, and very noticeable.
The Lexus LM 500h is yet to be tested by ANCAP so it doesn't have a safety assessment score. There is, however, a high level of safety tech onboard including AEB which can detect pedestrians, cyclists, motorcyclists and other vehicles, emergency steering assist, lane keeping assistance, road sign recognition, rear cross-traffic alert, front and rear parking sensors as well as six airbags.
For child seats there are ISOFIX points and top tether anchor mounts on the two rear seats. We have a forward facing child seat and found it easy to install.
A space-saver spare wheel is located under the boot floor.
This Tesla Model Y wears the same five-star ANCAP safety rating as its predecessor, awarded back in 2022.
Everything you expect is present and accounted for, including seven airbags, auto emergency braking (AEB), lane departure warning and assist (the latter being a little too panicky for my tastes) and cameras front and rear.
Special mention for the brand's semi-autonomous functionality, which – while not perfect – is among the best I've experienced. On the highway, it will stay in the centre of its lane, rather than the bumper-bowling-style swaying that some systems serve up, and change lanes for you when you indicate.
Lexus covers the LM 500h with a five-year, unlimited kilometre warranty.
The Lexus Encore Platinum program is complimentary for LM owners for three years, providing 24-hour roadside assist, a loan vehicle or pick-up/return service at service time, 'On Demand' vehicle evaluation options, valet and airport parking benefits as well as exclusive offers and event opportunities.
Servicing is recommended annually or every 15,000 kilometres, and impressively, pricing is capped at $695 per service over five years.
Underwhelming, I'm afraid. A four-year/80,000km warranty might be the worst offered by any mainstream brand in the country. For the record, five-year/unlimited km is now the minimum standard, with many brands far exceeding that.
Servicing intervals are a bit scattered, with the brand instead listing when things need to be done, rather than a traditional schedule.