2025 Tesla Model Y Pricing Announced: Core Variants Get a $4,500 Price Reduction
Tesla Australia has confirmed pricing for its updated 2025 Model Y electric SUV, with the standard trims seeing a price reduction of $4,500. After selling through the initial allocation of the Model Y RWD Launch Series – and with limited Long Range AWD Launch Series models still available – the company has announced the new, more affordable prices for the core variants. Customer deliveries are scheduled to commence in June.
The 2025 Model Y Rear-Wheel Drive now starts at $58,900, while the Long Range AWD is priced at $68,900, both before on-road costs. This represents a $3,000 increase compared to the pre-update Model Y Rear-Wheel Drive, yet offers a $1,000 decrease from the outgoing Long Range AWD. Tesla has yet to unveil specific pricing for the flagship Performance model.
These new prices place the Model Y competitively against new rivals, including the XPeng G6 Standard Range ($54,800), Deepal S07 ($53,900), and Kia EV5 Air Standard Range ($56,770), all prices before on-road costs.
A senior Tesla executive, speaking exclusively to Chasing Cars, suggested that the new Model Y’s pricing strategy should be more stable, moving away from frequent price adjustments.
Compared to the initial Launch Series, the standard Model Y models are equipped with 19-inch Crossflow alloy wheels (one inch smaller) and do not include premium paint options such as Stealth Grey, Quicksilver, Ultra Red, and the new Glacier Blue, which were previously offered at an additional cost.
Updates to the interior include a revised bezel around the wireless phone charger, different upholstery, and the absence of puddle lights. Key standard features remain, however, including heated and ventilated front seats, ambient lighting, a hands-free power tailgate, adaptive pixel headlights, improved phone key performance, and a front bumper camera.
The cabin retains the indicator stalk on the left, replacing the Model 3’s button controls, and the new Model Y includes a silver-coated layer on the glass roof to help regulate cabin temperature. A 15.4-inch multimedia touchscreen with internet connectivity, built-in navigation and downloadable apps, like Spotify and YouTube, serves as the central infotainment hub. Like the updated Model 3, the Y incorporates an 8.0-inch rear touchscreen that supports media streaming and HVAC control.
The second row is expected to offer enhanced comfort with a redesigned bench and squab featuring heating for outer seating positions, a power recline function, and a fully flat-folding capability.
A notable change is the downgrade to a 9-speaker sound system for the base Model Y, in contrast to the 13-speaker configuration with a subwoofer available in previous models. The Long Range variant is equipped with a 15-speaker system.
A full-width front light bar integrates indicators and is mirrored at the rear by a red glowing strip featuring integral ‘TESLA’ badging. According to Tesla, the new Cybertruck-inspired design, along with acoustic glass that reduces wind noise by 20%, improves aerodynamics. This boosts range by 11km in the RWD (now 466km) and 18km (now 551km) for the Long Range AWD.
While Tesla does not publicly share output figures, industry data indicates a 5kW increase in power for the RWD, while the AWD’s power remains consistent. Weight appears to have increased significantly, with the new RWD model being 148kg heavier.
Performance improvements are also evident. The 0-100km/h sprint is a full second faster at 5.9 seconds for the rear-drive, while the AWD model improves by a tenth to 4.3 seconds with Acceleration Boost. Top speed has decreased from 217km/h to 201km/h.
Suspension upgrades have been implemented, and Tesla states the updated Model Y retains its sharp handling while enhancing ride comfort. The springs and dampers should also generate less noise.
Further details and a comprehensive road test of the updated Tesla Model Y are anticipated in the coming weeks.
2025 Tesla Model Y pricing (before on-road costs):
- Model Y RWD — $58,900 (up $3000)
- Model Y RWD Launch Series — $63,400 (sold out)
- Model Y LR AWD — $68,900 (down $1000)
- Model Y LR AWD Launch Series — $73,400
