Tesla’s electric vehicles are getting cheaper around the world. The company recently slashed Model Y prices in several countries, leaving some customers who paid premium prices feeling frustrated.
In Australia, Tesla cut $4,500 from the Model Y’s price tag by discontinuing the Launch Series and now selling Standard and Long Range models instead. The Long Range model is now priced at $68,900 AUD plus a $1,400 delivery fee, making it the cheapest ever in Australia with a decrease of $45,000 compared to the Launch Series. Canadian buyers saw an even bigger discount. Tesla dropped prices by $20,000 after moving production from Shanghai to Berlin, avoiding Chinese import tariffs. The Long Range Model Y now costs CA$64,990 in Canada.
The 2025 Model Y facelift starts at $46,880 in the United States, positioning it competitively against rivals like the Ford Mustang Mach-E and Hyundai Ioniq 5 with its 337-mile range. Tesla’s also clearing out remaining 2025 inventory at what industry watchers call “fire-sale prices” to meet quarterly sales goals. Meanwhile, the company’s only offering fully-loaded 2026 models priced around $60,000.
These dramatic price cuts have upset customers who recently paid much higher prices. Some buyers who spent over $60,000 are angry that similar vehicles now cost $48,000. The situation’s created confusion at dealerships, where staff promote discounted older models while marketing newer, pricier 2026 versions.
Tesla’s price changes reflect broader market conditions. Global EV sales grew 50% year-over-year in China, but Tesla’s market share has declined as competition increases. The company’s facing brand perception challenges linked to leadership controversies, which affects resale values and consumer trust. Additionally, as Tesla navigates these challenges, many view Tesla’s entry into the Indian market as a pivotal move that could reshape its global strategy. This expansion could provide new growth opportunities, although it remains contingent on successfully establishing its brand in a competitive landscape. Ultimately, how Tesla addresses its brand perception issues will be crucial for sustaining consumer confidence in both existing and new markets.
Used Tesla prices are falling too. Pre-owned Model Y values dropped 13.6% in June 2025, driven by new EV incentives and increased competition. Model S and Model X depreciation exceeded 15% as government incentives expired.
The pricing strategy varies by region. Canada’s 100% tariffs on Chinese imports forced Tesla to shift production to Berlin. This flexibility in manufacturing locations helped the company avoid trade barriers while absorbing shipping costs.
Tesla’s delayed plans for cheaper Model Y variants, focusing instead on higher-margin units. The 2025 facelift includes exterior updates, new interior materials, and feature upgrades. However, standard models have fewer options than the older Launch Series vehicles, creating perceived quality trade-offs for budget-conscious buyers. In response to competition, Tesla aims to enhance the appeal of the Model Y by integrating features that align with consumer expectations. This includes analyzing China’s Tesla Model Y L features, which have been well-received for their innovative designs and practical functionalities. By incorporating similar elements, Tesla hopes to attract a wider audience while maintaining its premium reputation.