Tesla has updated its best selling SUV for model year 2027, and the headline is a cheaper flagship. The Model Y Performance now starts at $84,900 before on-road costs, about $4,500 less than before, and it is now built in Shanghai rather than Berlin for Australian buyers.

What has changed

Beyond the price, the updated Model Y Premium AWD drops its 0 to 100 km/h time to 4.3 seconds, half a second quicker than before. The Tesla Model Y also gains Power Share, Tesla's vehicle to load system, which runs household devices through a $145 Tesla Outlet Adapter, though only on the new Model 3 and Model Y, not older cars. The Model 3 Performance now claims up to 600 km of WLTP range, up from 571 km, and its touchscreen grows to 16 inches.

Cartell Assessment

This is a sharpening, not a reinvention. Tesla has answered the fast, well equipped Chinese EVs on price and features without a new badge, and a cheaper, quicker Model Y matters more here than almost anywhere, because it is the EV most Australians already cross-shop.

AU Outlook

Orders are open now, with deliveries from later in October. Expect rivals such as the Zeekr 7X and the BYD Sealion 7 to feel the pressure on value.

Full specs and price
2026 Tesla Model Y, Australian price, specs and rivals →