Source: Tesla

Thom Drew, Tesla's Country Director for New Zealand and Australia, stated in an interview with Chasing Cars that Tesla will discontinue its strategy of frequent price adjustments with the release of the new Model Y.

Drew highlighted that the new Model Y will introduce a more consistent pricing strategy in the Australian market, despite the competition from Chinese automakers.

In 2024, the Model Y became Australia's best-selling electric car. He believes Tesla is transitioning away from its price wars as Model Y prices continue to decrease.

"We certainly won't get caught in a price war," Drew said. "Tesla has been known for frequent price adjustments in recent years, but now we've reached a reasonable pricing level.

Once the production pricing for the new Model Y is announced, I believe we will be in a strong position—especially with the upgraded vehicles offering excellent value for money."

The first batch of new Model Y vehicles is expected to be delivered in May in Australia, with substantial delivery volumes planned to meet high market demand.

Source: Tesla

Drew also confirmed that the highly anticipated Rear-Wheel Drive (RWD) version, which has sold out in its Launch Edition, will return in a regular version in the coming weeks.

Currently, consumers can still order the Long Range and All-Wheel Drive (AWD) versions of the Model Y Launch Edition through Tesla's online configurator.

While it's unclear if Tesla will apply a similar pricing stability strategy outside the Asia-Pacific region, Drew emphasized that this measure is necessary to counter competition from Chinese EV brands.

He stated that Tesla will continue focusing on product quality and competitiveness, optimizing customer experience to maintain its market leadership.

"We must ensure our product quality and competitiveness," Drew remarked. "We need to offer the best ownership experience to retain our brand's leading position in the market."

Drew also mentioned that the Model Y is currently the most affordable EV in the Australian market. He stressed that maintaining price stability will effectively fend off competitors in the coming period.

Tesla is reportedly considering to launch a stripped-down low cost Model Y version in China, which would further enhance the model's market competitiveness.

"As of now, I haven't heard of a cheaper model than the Model Y," Drew added. "If there is one, we would certainly consider it."

The article notes that the Australian market requires Right-Hand Drive (RHD) vehicles, meaning cars drive on the left side of the road with steering wheels on the right side.

Tesla's Shanghai Gigafactory supplies vehicles to Australia, New Zealand, and several other Asia-Pacific markets.

"

On January 10, Tesla introduced the Model Y facelift “Juniper” in China, with the first Launch Edition units delivered on February 26. Regular versions officially went on sale earlier this month.