Tesla Model 3 vs Mercedes-Benz E-Class

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.

The Mercedes-AMG E53 Hybrid 4Matic+ is a superb blend of high-tech hybrid muscle and cossetting top-end luxury. Value is competitive, it looks (and feels) the business, despite the conventional sedan configuration it’s surprisingly practical (except for the modest boot), fuel-efficiency is a key benefit and safety is stellar. The ownership proposition is okay for the category but that’s not top of mind when an enticing series of corners ranges into view. It’s an impressive package.

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

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.

At first glance the E53 passes as a flash-looking Mercedes-Benz E-Class running 20-inch rims, especially in the launch car’s rich ‘Patagonia Red’ finish.

But then, there’s something about the AMG sedan’s stance that sets it apart. Which makes sense because the front fenders are wider by 11mm on both sides (compared to the E-Class) to make room for a wider front track (increased by just over 30mm over the previous-generation E53).

Wheelbase has also increased by just over 20mm to almost 3.0m and the car’s more aggressive nose treatment enhances the distinctive look.

There’s the AMG-specific radiator trim with ‘Panamericana’-style vertical slats, the sleek dual-section headlights and a large lower inlet that directs air to an additional front intercooler as well as an external opening for a wheel-arch cooler.

In profile there’s barely a hard edge to be seen, although character lines in the bonnet and along the car’s flanks contribute to a taut surface treatment.

At the rear, horizontally-connected LED tail-lights feature a stylised Mercedes three-pointed star signature, then a rear apron housing a diffuser and twin double tailpipe ‘trims’ and a bootlid spoiler on the left and right round off a beautifully proportioned design.

Climbing inside means a trip to screen city with an upright digital display in front of the driver flanked by a large central screen to the left and an additional panel for the front passenger beyond that. It’s a lot.

But once you’re on top of all the glass surfaces, details like open pore grey ashwood trim on the lower console come into focus, as do the brushed metal accents, beautifully sculpted ‘Performance’ front sports seats (optionally fitted to our launch drive example), racy stainless steel pedal covers and the five spoke AMG performance steering wheel with configurable rotary buttons.

It’s a supremely luxurious and comfortable interior. 

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 over 4.9m long, close to 2.1m wide and a little under 1.5m tall, with a 2961mm wheelbase, the new E53 is a substantial car and feels it on the inside.

Plenty of breathing space for the driver and front passenger thanks in part to the away slope of the screen-dominated dash.

Generous storage, too, with large door bins including enough space for big bottles, a deep lidded box between the seats (which doubles as a centre armrest), a generous glove box and two cupholders under a sliding top at the front of the centre console. 

Hit the second row, and sitting behind the driver’s seat, set for my 183cm position, I have plenty of head and legroom, with enough shoulder space for three adults on short journeys. A trio of up to mid-teenage kids will be fine for a road trip.

Storage is pretty handy as well with hefty door bins and two pop-out cupholders in the fold-down centre armrest. No map pockets on the back of the (optional) Performance front seats, though.

Four-zone climate control means there’s individual temperature control for each side of the back seat, with adjustable vents at the back of the front centre console and trailing edge of the B-pillars. Very civilised.

Power and connectivity runs to three USB-C outlets and a wireless device charging pad in the front.

Thanks to the traction battery under its floor, boot volume is restricted to 370 litres (compared to 540L in the conventional E-Class sedan), although there are bag hooks, tie-down anchors and the 60/40 split-folding rear seat is able to liberate more space.

No spare tyre of any description, just a repair/inflator kit, which might make sense for automotive designers and engineers trying to maximise space and reduce weight, but doesn’t make sense for an owner stranded on the side of the road with an unrepairable puncture.

Priced at $199,900, before on-road costs, the Mercedes-AMG E53 Hybrid 4Matic+ lines up against an interesting mix of internal combustion, hybrid and pure-EV contenders, the most closely aligned on spec and price being the BMW M4 M Competition xDrive ($201,300), Lexus LS500h F Sport ($199,250) and Porsche Taycan 4 Cross Turismo ($197,400).

And as you’d expect for a performance sedan on the cusp of $200K the standard equipment list is long. Aside from the performance and safety tech we’ll get to shortly, the E53 features four-zone automatic climate control, 17-speaker Burmester surround sound audio (including digital radio), Nappa leather trim (including the steering wheel) and the ‘MBUX Superscreen’ display consisting of three screens - 14.4-inch central media, 12.3-inch instrument/info for the driver and 12.3-inch for the front passenger.

You can also tick off the box on Android Auto, Apple CarPlay and Bluetooth connectivity, plus the power front seats (with memory) are heated.

There’s also a head-up display, panoramic sliding sunroof, ambient lighting, keyless entry and start, built-in nav, a 360-degree virtual top-down camera view, LED exterior lighting and 20-inch alloy rims. 

There’s more, but you get the idea. This car is loaded with included features that help it match or better its diverse competitive set.

There are four optional AMG packages available - The ‘Night Package’ ($3000) which includes aero-influenced body elements, special rims and more. The ‘Carbon Fibre Package’ ($6000), featuring a range of carbon bits including the exterior mirror caps, bootlid spoiler and interior pieces like the centre console and steering wheel. A ‘Performance Seat Package’ ($5000), which unsurprisingly focuses on racier front seats with integrated headrests. And the ‘Energizing Package Plus’ ($5300) adds ‘multicontour’ front seats that are heated (as are the centre console lid and door armrests) and individual fragrance for the interior, as well as ionisation of the cabin air.

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.

The E53 is powered by a 3.0-litre, turbo-petrol, in-line six-cylinder engine working in concert with an electric motor housed within the car’s nine-speed (torque-converter) automatic transmission. 

Drive goes to all four wheels via an electro-mechanically controlled clutch distributing power between the front and rear axles.

Engine performance is up by around 10kW compared to the previous E53 thanks to software upgrades, a new twin-scroll turbo with higher boost pressure (1.5 bar vs 1.1 bar) as well as additional front and wheel-arch intercoolers. 

The engine alone produces 330kW/560Nm while the permanently excited synchronous motor chips in with a solid 120kW/480Nm for overall outputs of 450kW/750Nm.

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.

The E53’s official combined cycle (urban/extra-urban) fuel figure is 1.7L/100km, a spectacularly frugal number for such a high-performance machine. But it’s worth noting it’s predicated on the drive battery being constantly and completely recharged.

Speaking of which, the 28.6kWh, 400-volt traction battery is housed at the rear of the car under the boot floor. It delivers a claimed EV-only range of up to 100km, although that will diminish dramatically if you decide to push up towards the car’s pure-electric top speed of 140km/h.

Important to note the battery’s 21kWh ‘day-to-day’ capacity, designed to keep charge in reserve for any required ‘high-performance boosts’.

An 11kW AC charger is onboard with regenerative braking also harvesting energy, the car automatically selecting the level of recuperation power in line with traffic conditions.

In pure EV mode you can also manually adjust regen through four levels via the steering wheel-mounted transmission shift paddles. 

Auto stop/start for the engine is standard and 98 RON premium unleaded is recommended, although 95 RON is okay at a pinch.

The E53’s official fuel consumption figure and 50-litre tank capacity translate to a range approaching 3000km! But to bring that down to earth somewhat, on the launch drive program, covering urban and mostly highway running, we saw a (dash indicated) average of 6.4L/100km, which equates to a more realistic, but still lengthy, 780km between fills.

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.

If you’re lining up for a Mercedes-AMG you want an optimal blend of luxury and performance and the E53 Hybrid 4Matic+ nails that delicate balance.

With 450kW (that’s 612hp!) and 750Nm under your right foot, engaging ‘Race Start’, pushing the accelerator to the floor and letting the car do its thing will result in 0-100km/h acceleration in 3.8 seconds. The fat band of mid-range torque is so satisfying to lean into.

Induction, engine and exhaust sounds combine to produce a suitably gruff soundtrack with the hybrid powertrain operating seamlessly. Hit your preferred track day or tempt legal fate and you can explore the car’s claimed (governed) maximum velocity of 280km/h. 

The nine-speed auto is slick and manual changes using the wheel mounted paddles are rapid.  In normal conditions the AWD system is biased to the rear and an electric rear locking diff helps keep things under control if you decide to get the bit between your teeth on a twisting drive.

A chunky brace links the front suspension strut mounts and the car feels predictable and stable in enthusiastic cornering. Rubber is Michelin Pilot Sport 4S (245/35 fr / 275/30 rr) which grips with satisfying determination but does make its rumbling presence felt on anything approaching a coarse chip surface (despite the car’s standard acoustic glass).

Speed-sensitive power-steering delivers accuracy and good road feel without any jitters, the standard active rear-axle steering playing its part. The ‘turning point’ is 100km/h with the rear wheels subtly turning in the opposite direction to the fronts up to that speed and in the same direction beyond it.

‘AMG Ride Control’ combines steel spring suspension (strut front, multi-link rear) with adaptive adjustable damping for the choice of ‘Comfort’, ‘Sport’ and ‘Sport+’ settings. Comfort is the pick for B-road running on typically uneven surfaces. The optional ‘Performance’ sports front seats are comfortable and grippy in equal measure. 

Braking is by ventilated composite rotors all around, with beefy four-piston fixed calipers up front. An electro-mechanical brake booster is designed to combine electrical recuperation with the hydraulic brake for more frequent and efficient energy harvesting over a longer period of time. The pedal feels firm and progressive with smooth initial bite. 

All around vision is good for a conventional sedan with a quality reversing camera, 360-degree overhead view and front and rear parking sensors helping massively with parking duties. That said, a 12.5m turning circle isn’t tiny.

The Mercedes-AMG E53 Hybrid 4Matic+ hasn’t been assessed by ANCAP or Euro NCAP, but that doesn’t mean it comes up short in terms of crash-avoidance and passive safety tech.

It features a comprehensive suite of ‘Advanced Driver Assistance Systems’ (ADAS) features including ‘Active Brake Assist’ (Merc-speak for AEB), adaptive cruise control, blind-spot monitoring, lane-change and lane-keeping assist, front and rear cross-traffic alert, traffic sign recognition, driver attention monitoring, adaptive high-beam, ‘Park Assist’ (including front and rear parking sensors) and tyre pressure monitoring.

And if an impact is unavoidable the airbag count runs to 11 - dual front, front and rear side, full-length side curtains, driver and front passenger knee and a front centre bag.

As the name implies, ‘Auto Emergency Call’ will contact emergency services after a collision and there’s even the obligatory Mercedes first aid kit and high-vis vests. 

There are three top tethers for child seats or baby capsules across the rear seat with ISOFIX anchors on the two outer rear positions.

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.

The Mercedes-AMG E53 Hybrid 4Matic+ is covered by a five-year/unlimited km warranty with the high-voltage battery covered for eight years/160,000km. Those terms match the key players in the premium and luxury parts of the market.

Mercedes-Benz ‘Road Care’ assistance is included for the duration of the main vehicle warranty. 

Maintenance is recommended every 12 months/25,000km, with service plans offered across three- ($4110), four- ($5410) and five-year ($7570) periods. That’s an average of around $1350 for the first two and $1500 for the last one. That added powertrain complexity obviously has an impact in the workshop.