Tesla Model 3 vs BMW 540i

What's the difference?

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.

Not all superheroes wear capes, and we're proud to report the 530e does its bit for green motoring without feeling the need to shout about it. And with no price or specification penalty, it's easier being green than ever before, and the pricing of this BMW really puts the cat amongst the canaries.

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.

Crucially, there's nothing weird about the way the 530e looks. While some green cars look like they've been designed by one of the kids from 3rd Rock from the Sun, the 530e looks much the same as the rest of the range, save a few tiny but telltale giveaways - like the e-drive badging outside, and what looks like a bonus fuel flap tucked in behind a front wheel that houses the whole plug-in bit.

And we really, really like it. It's elegant and statesman-like from every angle, and looked especially important in the deep-blue colour of our test vehicle. It's not over-designed, with body creases used sparingly, and the occasional glint of polished silver that rings the windows and the grille adds a final sense of shininess to an understated design. 

Inside, there's more going on than you might normally find in a BMW. The hugely complicated digital display screen now includes everything from battery charge, power usage to the usual assortment of speedometers and petrol readouts. 

It doesn't feel overdone or crazily festooned, but there's more at play here than in your usual BMW.

The dash is busy, too, with a wide screen emerging from a centre stack that also houses a CD player and a digital aircon setup, which in turn sits above a complex centre console from which you can alter driving settings, control the multimedia or cycle through electric modes. It doesn't feel overdone or crazily festooned, but there's more at play here than in your usual BMW.

Elsewhere inside, the seats are beautifully designed, with a quilted leather highlight through the middle, while the gloss-black strip that lines the dash hides a dual strip of ambient interior lights that also runs across all four doors.

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.

As the world's motoring tastes shrink faster than a lap-banded Clive Palmer, it's easy to forget the joys of the full-size sedan, but the space for passengers and luggage in the 5 Series will have you questioning your downsizing ways.

Upfront, there's plenty of room between front-seat riders, who will also share two smallish cup holders, along with room in each front door for bottles. There's also a dedicated wireless charge pad (which, because of its tight design, is crazy difficult to actually remove your phone from), but you'll also get two USB points and a power outlet that's hidden in the sizeable centre storage bin as standard fit.

Backseat riders get heaps of space, both in width and in leg room behind the front seats. And there's twin air-con temp controls and twin power outlets, too. But middle-seat passengers will be forced to sit with their legs on either side of the raised tunnel, which will definitely impact on comfort.

The boot's still sizeable, despite shrinking slightly to house the battery/fuel tank setup

Best to ditch the fifth passenger, then, and deploy the pull-down seat divider, which also houses two cup holders. Finally, there are three ISOFIX attachment points, one for each seat in the back.

The boot's still sizeable, despite shrinking slightly to house the battery/fuel tank setup (the tank has been moved further back to accomodate the batteries), and can be adjusted to be a flat load area if you'd like, offering up to 410 litres with the rear seats in place.

The 530e commands a 530i-equalling $108,900 price tag, which is genuinely impressive when you consider all the extra bits and pieces that go into make a plug-in hybrid. That money buys you a well-equipped car, and only those allergic to money need reach for the options list.

As standard, you'll find leather-wrapped - and heated in the front - sports seats, 19-inch alloy wheels and a 10.25-inch touchscreen that pairs with a really very good 16-speaker Haman Kardon stereo. Wireless Apple CarPlay is available, but it'll cost you an extra $500. To be honest, though, we didn't miss it.

You'll also find adaptive LED headlights, a huge head-up display (so big, in fact, that it impedes vision when climbing steep hills), dynamic dampers, an auto opening/closing boot and a self-parking system, along with BMW's suite of self-driving tech - but we'll come back to that under the Safety sub-heading.

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.

Drift around in pure EV mode and you'll be relying on the 530e's 83kW and 250Nm electric motor, which will provide what BMW refers to as "between 28 and 32 real-world kilometres".

Run out of range, or simply use too much throttle, and the 2.0-litre petrol engine comes into play, adding 135kW and 320Nm to the mix. All up, that's 185kW and 420Nm - respectable numbers by any measure, and enough to match the petrol-powered 530i's zero to 100km/h sprint of 6.2 seconds.

That power is fed through an eight-speed automatic transmission before being sent exclusively to the rear wheels, where it belongs.

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.

Like a Facebook relationship status, it's complicated. The 530e will sip a claimed combined 2.3 litres per hundred kilometres on the claimed/combined cycle, which is amazing for a car this size. Better still, it seems genuinely achievable - at the vehicle's launch, our own Richard Berry recorded a stunning 2.0 litres per hundred kilometres on a short test route.

But that's with a full load of battery charge on board. For our week with the 530e we were unable to actually plug it in (living in Sydney, I can't afford a garage), so once the initial battery charge had been used we were back to mostly petrol power. Unlike some other plug-in hybrids we've driven, we found it very difficult to recharge the battery to any meaningful level using regenerative braking, so once we were flat we stayed flat. If we had plugged it in, it would have been a two-hour recharge using a specialised wall unit, or about four hours using a normal plug.

As a result, though, our fuel use was closer to 7.0 litres per hundred kilometres after some considerable real-world testing.

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.

There's so much to like about the way the 530e sets about saving the world, and that's mostly because it doesn't shout about it, either to the driver or the outside world.

It's very much an underpants inside its pants superhero, which makes us like it even more. Set off in EV mode, and the 530e will drift silently away from the curb, burning battery power over fuel for as many as 30(ish) kilometres. But equally important, the shift from green to gas is largely imperceptible, with the petrol engine joining in willingly when you ask it to - usual via a prod of your right foot.

It is so effortlessly smooth that you need to really pay attention to notice the eight-speed 'box changing gears at city speeds, and it's commendably quiet, whichever drive mode you're in.

Downsides? Well, it doesn't feel quite as sharp as it's conventional-engined siblings. The batteries add around 230kg in weight, which never helps, and it all feels a little softer and a little less dynamic, even with Sport mode engaged. BMW assures us the adaptive suspension setup and tune is identical, but the 530e feels noticeably softer when you tackle a twisting back road. And that encourages you to use your right foot a little more, which in turn negates the whole electric thing in the first place.

One of the great joys of BMWs has always been their ability to transform from cosseting comfort to rear-drive rocket when you want them to, and you can't help but notice the 530e isn't quite up to that challenge. But if your intentions are mostly city- and freeway-based, then this plug-in BMW is almost indiscernible from its petrol-powered sibling.

You'll want for little here, with front, front-side and full curtain airbags joining parking sensors, a surround-view camera and a self-parking system.

You can also expect active cruise control, lane control assist with lane keep assist (so it will stay between the lane markings for you), AEB and cross-traffic warning. And all of that means that, technically, the 530e can drive for you. That is, of course, if you don't mind driving like a dick - in full-autonomous mode it will swerve from lane marking to lane marking like it's playing bumper bowling.

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.

Like the rest of the 5 Series range, the 530e falls under BMW's three-year, unlimited-kilometre warranty. There are no set service intervals, either, with BMW using what it calls 'condition-based' servicing. In other words, the car will tell you when it requires a trip to the service centre.

The batteries are covered by a separate warranty covering six years or 100,000km.