Tesla Model 3, Model Y cheaper than ever, prices from $54,900 plus on-road costs

Tesla has instigated another round of price cuts that make the Model 3 and Model Y cheaper than ever.

The entry-level Model 3 Rear-Wheel Drive now sells from $54,900 plus on-road costs, representing a $4000 reduction on top of last month’s $3000 price cut. 

The dual-motor Model 3 Long Range is also $3000 cheaper at $67,900 plus costs, while the just-arriving Model 3 Performance is unchanged at $80,900.

The top-selling Model Y SUV has also dropped to $55,900 plus on-road costs for the Rear-Wheel Drive, representing a $5000 reduction from a price cut just weeks ago.

It’s the cheapest price the Model Y has ever been offered for in Australia and ramps up pressure on rivals, which include the Toyota bZ4X, Subaru Solterra, Ford Mustang Mach-E and Hyundai Ioniq 5.

It also mounts pressure on the soon-to-arrive Kia EV5; Kia had vowed to undercut the Model Y when the EV5 arrives in July. 

The price cut to the Tesla Model Y doesn’t stretch to the dual-motor Long Range and Performance models, which sell for $69,900 and $82,900 respectively, each before on-road costs.

The latest of multiple price cuts has already fired up social media, with some who’ve recently taken delivery of a car miffed by the reductions.

Tesla CEO Elon Musk has previously taken to X (formerly Twitter) to defend the price cuts, arguing they’re necessary to keep demand ticking along.

“Tesla prices must change frequently in order to match production with demand,” he said in April.

Tesla still accounts for about half of all EVs sold in Australia, but its market share has been slipping as rivals such as Toyota, Subaru, Kia, Hyundai start selling more electric cars.