Now faced with fierce competition from the likes of BYD and Zeekr, Tesla has reimagined their affordable model lineup.
As of this month, Tesla is reducing the barrier to entry into their cars by introducing a new entry-level variant.
Tesla has cut the entry price of its Model 3 in Australia by $9,000.
The new Rear-Wheel Drive variant starts from A$45,900 before on-road costs, which works out to a little more than $50,000 drive-away. That makes it the most affordable Tesla we’ve ever seen on Australian roads.
Your savings don’t have to stop there though, how you pay for the car can change the real cost of ownership dramatically.
Tesla has cut its price, but not it’s performance.
Tesla has trimmed the extras, not the essentials.
Under the bonnet, the new entry model uses the same 208kW rear motor and 62.5kWh LFP battery as the Premium RWD.
It boasts a claimed range of 572km WLTP, up from 520km, and the 0–100km/h sprint still makes your neck hairs stand at 6.2 seconds.
You still get the things that make a Tesla a Tesla. It maintains it’s premium brand identity and offers their core features drivers value most:
- Iconic silhouette
- Panoramic glass roof
- Ride comfort
- Over-the-air updates
- Supercharger network access
Plus, if you want Full Self-Driving (Supervised), it’s available as a monthly subscription at $149.
What features won’t you find?
Now for the trimmed extras.
Drivers won’t have access to features like a rear touchscreen, heated rear seats, ventilated front seats and wraparound ambient lighting. Looking at the infotainment, internet streaming appears as the only option with FM and DAB removed.
For most drivers, especially first-time EV buyers, that’s a trade worth making. Heated rear seats are lovely, but $9000 buys a lot of lovely.
How does it compare against the competition?
The EV market is fiercer than ever, and Tesla knows it. Gone are the days where they dominated EV market share.
The new Model 3 undercuts the Kia EV4, BYD Seal and Mazda 6e by about $4000. Add Tesla’s Supercharger access and software updates, and it offers serious value for anyone shopping for an electric sedan.
Are you ready to order? The timing is right
The wait is short. The configurator went live on Thursday 1 October 2026, with first customer deliveries starting from mid-October in Australia. Orders are open right now.
Novated leasing can help you save more
Here’s where a good price becomes a great one.
You can maximise your savings by bundling the price of you car and all of your running costs like charging, rego, insurance, servicing and maintenance, and tyres, into one regular pre-tax payment.
For electric vehicles, there’s an extra advantage. Battery electric vehicles are exempt from fringe benefits tax (FBT) when they sit under the Luxury Car Tax threshold, which is A$91,661 for the 2026–27 financial year. At A$45,900 before on-road costs, the new Model 3 sits comfortably under that threshold.
This means, depending on your salary and circumstances, a novated lease could make your Tesla noticeably cheaper to own than buying it outright or taking out a standard car loan.
And if you’re upgrading, there’s a sweetener on the Tesla side too: a $2,000 trade-in bonus on eligible vehicles, for new and demonstrator cars ordered and delivered by 31 December 2026.
Get started with a free, no-obligation quote
Every driver’s numbers are different. Your salary, your tax bracket, how far you drive, whether you want to include charging costs, and what you owe on your current car all change the outcome. An online calculator can give you your pricing and savings estimate.
From here, our novated leasing specialists will walk you through exactly what the new Tesla Model 3 would cost you, with no jargon and no pressure.
This article is general information only and doesn’t constitute financial, tax or legal advice. Savings depend on individual circumstances, so speak with a qualified adviser. Vehicle pricing, incentives and delivery timing are subject to change by Tesla, so please confirm current details before ordering.