Prices for the top-selling 2024 Tesla Model Y have been slashed by up to $8500 as part of a minor model update for the popular mid-size electric SUV that ushers in three new paint colours and the option of black wheels for entry variants.
While the core of the three-grade Model Y range hasn’t changed, the prices have. The entry-level Tesla Model Y Rear-Wheel Drive now costs $63,900 plus on-road costs, which is $1500 cheaper than before.
That piles the pressure onto much slower selling recently-arrived rivals such as the Toyota bZ4X, Subaru Solterra and Ford Mustang Mach-E.
It also puts more pressure on the soon-to-arrive Kia EV5, which has vowed to undercut the Model Y with a list price set to slide below $60,000.
And, of course, it creates a greater price gap to the upcoming Polestar 4, which is priced from $81,500 plus ORCs.
Further up the Model Y range, the mid-level Long Range now sells from $72,900 plus ORCs, representing a $5500 price reduction.
And the top-of-the-range Model Y Performance is now priced at $82,900 plus ORCs – a full $8500 less than before.
The price reductions follow previous price cuts to the Model Y, and are an indication that Tesla is prepared to cut into its margins to maintain market share.
In 2023 the Model Y was the world’s top-selling vehicle and Australia’s second most popular SUV.
The Model Y’s sales success is continuing into 2024, when it slotted in behind the Toyota RAV4 and Mitsubishi Outlander at the top of the SUV sales figures for the first three months.
Accompanying the Model Y price tweaks are three new colours: Quicksilver (light grey for an extra $2600), Stealth Grey (dark grey, $2300) and Ultra red (replacing Multicoat red, also $2600), while Midnight Silver has been discontinued. White remains the only standard colour, which is one reason it’s by far the most popular hue.
There’s no change to standard equipment levels for the Model Y, which gets heated outboard seats, a panoramic sunroof, heated steering wheel, electrically adjustable steering column, fake leather trim, power adjustable front seats and the ability to program your smartphone as the key.
A recent software update also introduced matrix LED functionality to the headlights.
The Model Y RWD still gets a single motor powering the rear wheels, a claimed 0-100km/h acceleration time of 6.9 seconds and a lithium-ferrous phosphate (LFP) battery offering a claimed range of 455km (WLTP).
However, the 19-inch Gemini wheel covers (covering alloys underneath, as seen in these images) have now been painted black for a classier look compared with the silver of the outgoing model.
As before, the mid-grade Long Range adds a front motor that lowers the 0-100km/h time to 5.0 seconds, while the addition of a larger nickel manganese cobalt (NMC) battery extends the range to 533km (WLTP).
To some extent the changes bring the Model Y closer into line with the Model 3 sedan, which shares the same underpinnings and interior.
With the updated Highland version of the Model 3 introduced late last year, Tesla applied a $9000 premium for the Long Range variant compared with the Rear-Wheel Drive. That premium accounted for the bigger battery, additional front motor and a better sound system.
The Model Y Long Range now commands the same $9000 premium (it was previously $13,000), but while it gets the same battery and motor upgrade as the Model 3 LR, there’s no difference in the sound system between the Model Y Rear-Wheel Drive and Long Range.
The only difference in equipment between the two is the addition of front fog lights on the Long Range Model Y (Model 3s no longer get fog lights).
At the top of the Model Y range is still the Performance, which gets more power to lower the 0-100km/h time to 3.7sec and also picks up bigger 21-inch wheels and beefier brakes. But range drops to 514km.
The price adjustments for the Model Y may be in preparation for the upcoming, upgraded 2024 Model 3 Performance sedan, which is expected to go on sale within weeks.
The new Model 3 Performance is expected to get big performance upgrades and some additional equipment that will likely mean it brings a higher price premium than the Model Y.
The Model Y is also expected to get a bigger update later this year, bringing it closer into line with its Model 3 sibling.
Some of those changes have already been applied to cars sold in China, which come out of the same factory as Aussie-delivered Model Y vehicles.
That includes adjustable ambient lighting and new dash and door materials to replace the woodgrain of the current model.
Tesla Australia is quoting anyone who orders an updated Model Y today a delivery window of between April and June 2024.
How much does the 2024 Tesla Model Y cost?
Rear-Wheel Drive – $63,900 (-$1500)
Long Range – $72,900 (-$5500)
Performance – $82,900 (-8500)
* All prices exclude on-road costs