Is the 2026 Tesla Model Y still the best electric SUV in Australia? We test price, range, efficiency, space, safety and Full Self-Driving (Supervised) in local conditions.
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2026 Tesla Model 3 price, specs and release date in Australia: Tesla cuts entry price by $9000
The new Tesla Model 3 has become the cheapest EV sedan in Australia with the new entry-level Rear-Wheel Drive variant that starts below $46,000.
Tesla has launched its cheapest Model 3 yet in Australia, introducing a new Rear-Wheel Drive variant priced from $45,900 before on-road costs.
The new Model 3 variant lowers the price of entry to Tesla ownership by a hefty $9,000 and arrives as affordable electric vehicles continue to gain traction in Australia, particularly from EV-focused, budget-friendly brands such as BYD, Geely, Jaecoo and MG.
It also expands Tesla's Australian range just months after the unveiling of the larger Model Y L that can seat six adults, and which is already proving a hit with car buyers.
While medium SUVs remain the default choice for families, competition and sales momentum in the electric sedan market is increasing, particularly below $60,000, with newcomers such as the Mazda 6e and Kia EV4 providing more choice and lower price points than ever before.
Indeed, the Chinese-built Mazda 6e has emerged as one of the most credible rivals yet to the Model 3 and BYD Seal, combining sharp pricing with a traditional brand with a large dealership network that many Australians already know.
More: Research and compare new electric cars, SUVs and utes on sale today in Australia
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The new Tesla Model 3 is the cheapest Tesla currently available in Australia.
Tesla Model 3 price in Australia
The new Tesla Model 3 Rear-Wheel Drive starts from $45,900 before on-road costs. That makes it the cheapest Tesla currently available in Australia and $9000 less expensive than the Model 3 Premium Rear-Wheel Drive.
2026 Tesla Model 3 range pricing (excl. on-road costs)
- Model 3 Rear-Wheel Drive: $45,900
- Model 3 Premium Rear-Wheel Drive: $54,900
- Model 3 Premium Long Range Rear-Wheel Drive: $61,900
- Model 3 Performance All-Wheel Drive: $80,900
What do you miss out on with the cheapest Tesla Model 3?
Tesla has taken a relatively conservative approach to cutting back on Model 3 features and specs to hit a mid-$40K price point.
The biggest change is the removal of the rear passenger touchscreen, while the most affordable model features fewer speakers and textile and vegan leather seating.
The cheapest Model 3 still retains the signature panoramic glass roof, heated front seats, heated steering wheel, Matrix LED headlights, front bumper camera and access to Tesla's Supercharger charging network, vehicle-to-load (V2L) capability and ongoing over-the-air (OTA) updates that deliver new and improved features over time.
There are three exterior colour choices available: Pearl White (no cost), Diamond Black ($1,500) and Stealth Grey ($1,900).
"The things that attract people to buy a Tesla, such as range, charging network, technology and ongoing software updates, are all still there in the cheapest Model 3," says RACV Motoring Editor Terry Martin.
The new Tesla Model 3 lowers the cost of entry to its Full Self-Driving (Supervised) technology.
Tesla Model 3 range and performance
Tesla claims the new Model 3 Rear-Wheel Drive can travel up to 572km on the WLTP test cycle and accelerate from 0-100km/h in 6.2 seconds. This is 10 per cent higher than the 520km claimed by the Model 3 Premium Rear-Wheel Drive, with lighter weight contributing to the improvement.
Tesla Full Self-Driving (Supervised) available on cheapest Model 3
Tesla says the new Model 3 also lowers the cost of entry to its pioneering Full Self-Driving (Supervised) technology that’s now available.
The software is available through a $149 monthly subscription in Australia and can be activated after purchase.
While the system can assist with steering, braking and acceleration in certain situations, drivers must remain attentive and supervise the vehicle at all times.
More: Self-driving cars explained: what autonomous vehicle technology means for Australian drivers
The new Model 3 can travel up to 572km on the WLTP test cycle.
SUVs may dominate in Australia, but sedans still make sense
The launch of the most affordable Model 3 comes despite Tesla's local sales being heavily skewed towards the Model Y SUV and larger six-seat Model Y variant.
The latest Electric Vehicle Council sales report shows Tesla delivered 4,476 Model Y SUVs in September 2026, compared with 1,178 Model 3 sedans. Year-to-date, the sales gap is even larger between Tesla's two models, with 35,930 Model Ys delivered compared with 5,775 Model 3s.
Martin says many Australians may be overlooking the advantages of a sedan by choosing a medium or large SUV for their next family car.
"SUVs are the default choice, but not necessarily the best, safest or most affordable choice for everyone," he says.
"If you don't need the extra ride height, medium sedans like the Model 3 can deliver more driving range, better efficiency, a lower purchase price and cheaper running costs than a medium or large SUV, and all at the price of a small SUV. For many families, overlooked sedans can be compelling value over the long-term."
More: The best affordable SUVs in Australia on sale
The 2026 Tesla Model 3 is a great choice for most people shopping for an EV.
Should you buy the cheapest Tesla Model 3?
Martin believes the new entry-level variant of the Tesla Model 3 will likely become the pick of the range for many buyers.
"For most people shopping for an electric car, especially those new to EVs, this is probably the Model 3 variant I'd be recommending first. We don't expect the ownership or driving experience of the cheapest Model 3 to be too diminished compared to the more expensive variants.
"A $9,000 saving buys a lot of charging at home or on the road, or a home charging or solar set up to lower energy costs, and Tesla hasn't sacrificed much of their unique features or vehicle performance to get there.
"The savings could also be used to subscribe to Tesla's Full Self-Driving (Supervised) if you're inclined to try Level 3 autonomous driving capabilities."
More: Australia's cheapest electric vehicles on sale
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