Tesla Slashes Nearly $3,000 Off In-Stock Model Y in Australia as EV Price War Heats Up

Tesla has rolled out its latest round of discounts in Australia, trimming close to $3,000 off the driveaway price of in-stock Model Y crossovers — the country's top-selling electric vehicle. Listings on Tesla's Australian website now show a$2,950 reduction in several states, including ACT, NSW, Queensland, Victoria and Tasmania, across a range of available configurations.

Measured against the regular sticker, that works out to roughly a 5% saving for buyers who pick a vehicle already sitting in inventory rather than ordering a custom build. Tesla is layering an extra incentive on top of the discount: a $2,000 trade-in bonus for customers who hand over an older car as part of a new Model Y purchase. That same trade-in sweetener is also being applied to Model 3 orders through the end of 2026.

Beyond the headline discounts, Tesla has revised its warranty terms for Australia. Every new Model 3 bought from the start of 2026 carries a five-year, unlimited-kilometre warranty — an upgrade from the previous four-year/80,000 km coverage. Tesla Australia describes the move as a first for any market where its vehicles are sold. The Model Y lineup still spans four variants locally: Premium RWD, Premium AWD Long Range, an AWD six-seat L, and the AWD Performance. The Model 3 range covers three: Premium RWD, Premium RWD Long Range, and AWD Performance. Before on-road costs, the single-motor Model Y starts at $58,900 and climbs to$84,900 for the Performance trim, while the Model 3 spans $45,900 to$80,900.

The discounts come amid a broader scramble for buyers. Tesla has already moved 41,705 EVs in Australia this year, and it recently trimmed the price of the Model Y Performance and introduced a stripped-back Model 3. Rival BYD is countering with $4,000 cashback, Geely is dangling low-interest loans, and other brands are rolling out their own incentives as competition intensifies.

The wider context matters here. Australia’s EV segment has shifted from a supply-constrained market to one where multiple brands fight for the same customers, and price has become the primary battleground. For Tesla, the inventory discount serves a dual purpose: it clears stock sitting on lots while keeping the Model Y within reach of buyers who might otherwise drift to a cheaper rival. Whether the strategy protects Tesla’s market position — or simply trains buyers to wait for the next cut — is the open question heading into the final stretch of 2026.