Tesla has officially introduced its 2025 Tesla Model Y at the Everything Electric Show in Sydney earlier this March, showcasing revamped features and strategic updates aimed at elevating its position in the competitive electric vehicle (EV) market in Australia. The eagerly awaited Model Y promises to offer improvements in range, performance, and comfort, catering to the growing fan base of electric SUVs.
Pricing for the updated Model Y starts at $58,900 for the single-motor Rear-Wheel Drive (RWD) variant, marking a $4,500 reduction compared to the now-sold-out special edition launch series vehicle which was priced at $63,400. Meanwhile, the top-spec dual-motor all-wheel-drive (AWD) variant is now being offered for $68,900, down from $73,400 of its launch counterpart. Tesla’s commitment to providing a competitive price model continues as they aim to attract more buyers.
One of the highlight changes with the new Model Y is the introduction of 19-inch Crossflow wheels, which caters to those seeking improved range from their vehicles. This shift from the previously standard 20-inch Helix 2.0 wheels also reflects Tesla's desire to provide more tailored options for its customers.
The updated model has a substantial list of enhancements including an upgraded range, capable of driving up to 466 kilometers with the RWD variant—a modest gain of 11 km compared to past versions. The dual-motor Long Range AWD variant also experiences a performance boost, achieving up to 551 kilometers on a full charge. Notably, acceleration improvements mean the RWD can now accelerate from 0 to 100 km/h in a swift 5.9 seconds, a full second faster than before, while the Long Range model does it in just 5.3 seconds, achieving a 0.2 seconds reduction in time.
Inside, Tesla has made considerable upgrades to the cabin. The Model Y now features heated and ventilated front seats, with rear passenger controls and entertainment screens, alongside a refined interior with enhanced acoustic glass to significantly reduce cabin noise. Additionally, second-row seats will boast power-reclining features for added comfort.
Demand for the 2025 Model Y has been staggering; Tesla reported receiving over 200,000 orders in China alone, underscoring the enthusiasm surrounding this model. Following this announcement, data from the Shanghai factory confirmed that 9,450 units of the new Model Y were delivered in a single week, the highest production rate since 2025 began. Local deliveries are set to launch in May 2025, with the completion of initial launch series vehicles followed by standard models expected to commence in June 2025.
However, Tesla’s journey in Australia has not been without challenges. Recent sales figures indicate a staggering 65.6 percent decline year-to-date for the brand, prompting discussions within the industry regarding potential strategies to regain momentum. Reports suggest that Tesla may consider rolling out new and even lower-grade variants to broaden appeal, mirroring previous tactics utilized in different markets.
As the Tesla Model Y pivots into the spotlight amidst heightened competition from other manufacturers—like the XPeng G6 and Kia EV5, both of which boast competitive pricing—how Tesla navigates this landscape will define its upcoming trajectory in the evolving EV space. With a focus on performance, range increases, and affordability, the 2025 Model Y clearly positions Tesla for a crucial comeback in the Australian electric vehicle segment.
With industry buzz surrounding this latest launch, it will be interesting to monitor not only the reception of the new Model Y but also the subsequent shifts in buyer preferences and trends across Australia’s burgeoning EV market.
