Tesla Model 3 vs BMW M5
What's the difference?

Tesla Model 3

$54,900 - $80,900

2026 price

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BMW M5

—

2025 price

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Maserati Quattroporte

Mazda 6

Mazda Cx-6E

Mercedes-Benz A200

Mercedes-Benz C-Class

Mercedes-Benz C43

Mercedes-Benz C63

Mercedes-Benz CLS-Class

Mercedes-Benz E-Class

Mercedes-Benz EQ-Class

Mercedes-Benz EQS

Mercedes-Benz S-Class

Renault Megane E-Tech

Renault Scenic E-Tech

Summary

2026 Tesla Model 3

2025 BMW M5

By James Cleary

By John Law

Safety Rating

Electric motor type

Permanent Magnet

Bi Turbo V8, 4.4L

Vehicle type

Battery Electric

Premium Unleaded/Electric

Fuel Efficiency

—

3.0L/100km (combined)

Energy consumption

13.6 kWh/100km

—

Electric range

750 km

67 km

Battery capacity

75.00 kWh

22.10 kWh

Seating

Likes

Safety
Energy efficiency
Cabin environment

Stunning speed
Drive mode customisation
Impressive agility

Dislikes

No spare tyre
FSD unconvincing
Average ownership proposition

Awkward boot
Brake and steering feel
Low on hooliganism

2026 Tesla Model 3 Summary

It’s been in Australia since 2019 and despite the arrival of a comprehensively upgraded version in late 2023, the Tesla Model 3’s once gargantuan popularity has been declining in recent years.

A seemingly never-ending influx of pure-electric alternatives, primarily from China, has eroded the mid-size sedan’s positioning as the go-to, best-value EV choice.

But to its credit Tesla has again evolved the Model 3 proposition with the introduction of this Long Range Rear-Wheel Drive grade in October last year, at the time positioning it as “the longest-range EV in Australia”.

Since then, Tesla has adjusted the model grade name to Premium Long Range Rear-Wheel Drive.

Some additional tweaks, made in response to customer feedback, also illustrates the EV pioneer’s determination to step up in the face of increasingly fierce competition.

So, does this latest Model 3 do enough to earn a spot on your electric vehicle shopping list? We spent a week behind the wheel to find out.

@carsguide.com.au ‘Dog Mode’ in the Tesla Model 3 is a life-saver for four-legged friends in the summer heat.🐾 #tesla #model3 #ev #cartok #doggosdoingthings ♬ original sound - CarsGuide.com.au

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2025 BMW M5 Summary

Balancing luxury car comfort, hot hatch agility and supercar speed is no easy task, yet that is what made the six previous generations of BMW's M5 so iconic.

In seventh-generation ‘G90’ guise, the M5 has another skeleton in the cupboard: the toughest emissions regulations that Europe, and now Australia, have ever seen.

A twin-turbo V8 was untenable and going battery electric was not an option. Plug-in hybrid was the only answer. For the new M5, BMW combined a revised 4.4-litre ‘S68’ bent eight with a punchy electric motor for 535kW and 1000Nm.

Problem is, the G90 is widely acknowledged as one of the greatest BMW M cars of all time, especially in CS trim. And thanks to a circa-600kg weight hike to nearly 2500kg, the new M5's 0-100km/h claim is actually slower than the old 'F90' M5.

Doesn’t exactly sound like a big leap forward, does it?

A drive through the Central West of NSW and around the iconic Mount Panorama racing circuit gave us answers to two questions. Does the M5 work on Australia roads, and does BMW M's latest super-sedan represent progress?

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Deep dive comparison

2026 Tesla Model 3 2025 BMW M5

Verdict

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.

Verdict

Let’s get one thing out of the way: the new M5 is a very good car. Considering the emissions limitations and size increase of its base model, it is an impressive bit of engineering.

What’s trickier is deciding whether the new car is really better to drive. Less edgy but supremely comfortable and quiet; BMW leaned into the daily usability of the plug-in hybrid M5 rather than amping the petrol-electric system for maximum thrills. And do you know what? That’s fine with me.

The new M5 still performs on road and track and does an incredible job of hiding its weight (most of the time). Perhaps the G90 is a little more Audi RS6 than F90 in its demeanour but some would argue that’s no bad thing.

The concept of the BMW M5 is not static, it evolves with the times, and the G90 is no exception. Expect future Competition and CS variants to unlock some extra lunacy.

Note: CarsGuide attended this event as a guest of the manufacturer, with meals provided.

Tesla Model 3 vs BMW M5 What's the difference?

Summary

Deep dive comparison

Verdict

Verdict

Tesla Model 3 vs BMW M5
What's the difference?