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A white Tesla Model Y parked close to people eating at outdoor tables

Drive

‘Cheaper’ Teslas not for Australia

Byron Mathioudakis profile picture

by Byron Mathioudakis

Published Oct 2025

3 min read

Snapshot

Text size

Byron Mathioudakis profile picture

by Byron Mathioudakis

Published Oct 2025

Text size

After months of speculation, Tesla has unveiled a stripped-out version of the latest Model 3 sedan and the closely-related Model Y SUV in the United States.

Known as Standard, and developed to boost flagging sales, it ushers in lower prices, a smaller battery, fewer luxuries and – in the base Model Y – minor styling alterations as a result of dropping some of the higher-tech features that were previously in all models, but now start in the newly-dubbed Premium grade.

In the US, the Model 3 Standard starts from $36,990 ($52,600 in Australian dollars), which is a cut of $5000 ($A7600), and the Model Y Standard kicks off from $39,990 ($A60,800), saving North Americans some $5500 ($A8400).

A dark grey Tesla Model 3 driving on a country road

But the bad news is that the Standard in either guise is unlikely to arrive in Australia any time soon, as they currently pertain to the American and German-made Teslas that have some differences compared to the Chinese-built Teslas sold over here, including battery chemistry that helps keep the latter’s prices down.

This is a double-whammy blow for Australian fans of the brand that has seen demand fall substantially this year due in part to controversy surrounding CEO, Elon Musk.

Firstly, because speculation has been rife for some time that cheaper Model 3s and Model Ys were imminent; and secondly, plans for a smaller and much-more affordable “People’s Tesla” have reportedly been abandoned.

This means that, in Australia, the least-expensive 3 Single Motor RWD (for rear-wheel drive) continues from $54,900 (all prices are before on-road costs), while the equivalent Model Y is from $58,900.

Based on those prices, and with the US Standard versions of each representing a circa-12 per cent cost saving, an Australian-bound Model 3 Standard could begin from just over $48,000 and the Model Y Standard from under $52,000.

The front interior of a Tesla Model Y

So, what do buyers lose compared to the Premium grades in North America?

Range, for starters. That new battery at about 69kWh (Tesla does not divulge such figures) translates to nearly 60km less range, at about 515km, compared to the Premium’s 82kWh equivalent. Power and charging speeds are also down a bit, though exact numbers aren’t as yet known.

However, they have fallen enough for the Model Y Standard’s 0-100km/h sprint time to jump from 5.4 seconds to 6.8s, according to some US reports.

Speaking of which, the bigger visual changes are reserved for the SUV, since its headlights, taillights and bumpers are new, having been redesigned around simpler LED designs instead of the full-length LED bars front and back. Plus, the hatch glass is a different shape and the 18-inch wheels have also been restyled.

The net result, according to Tesla, is improved efficiency thanks to better aerodynamics.

In contrast, the Model 3 Standard looks much the same, bar scoring its own wheel designs and black instead of chrome badging.

But existing owners will certainly notice the changes inside both Teslas, since the Standard swaps out the Premium’s artificial leather seat and door-cap facings for cloth inserts, while there have been some important specification deletions as well.

Gone are the physical buttons for the powered front seats (adjustments are via the central touchscreen only), rear-seat 8.0-inch display, electric steering column, ventilated front seats, heated rear seats, FM radio, wrap-around ambient lighting, powered folding mirrors, 15-speaker audio (for a seven-speaker set-up) and frequency-selective suspension dampers. And the ‘key’ is a smartphone app.

Furthermore, the Model Y Standard ditches the Premium’s power-folding rear seats, panoramic glass roof, full-sized centre console for a half-console design and acoustic glass.

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*20% off the retail charging price at RAC EV charging locations located at RAC Head Office, RAC Auto Services Rockingham, RAC Monkey Mia Park & Resort, RAC Busselton Holiday Park, RAC Esperance Holiday Park, RAC Karri Valley Resort and RAC Monkey Mia Resort. Discounts are applicable on all charger types pending location including DC ultra-rapid charge, DC fast charge and AC slow charge. For participating locations please download the Chargefox app. For terms and conditions of use of the Chargefox Network visit: https://www.chargefox.com/terms-and-conditions/

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