Tesla Model Y vs Tesla Model 3

What's the difference?

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.

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.