“That does seem high”. Are we about to get a Model 3 price cut in Australia?

The Tesla Model 3 is an amazing car, but the biggest criticism is how expensive the car is, putting it out of reach of many Australians. Like most countries, we have a number of on-road costs that add to the overall cost, however we do something really crazy and add a luxury car tax to EVs.

The single biggest cost component of an EV right now is the battery. This means that people who buy an EV, aren’t necessarily choosing to buy a car in the premium price tier, that is just where it ends up right now.

The Model 3 was famously announced as the US$35,000 car, but more commonly the car lands around US$40,000. By the time that arrives in your driveway in Australia, you’ll be missing more than $100,000 from your wallet.

Brisbane owner, EV-HQ asked Elon Musk about the price..

Musk replied “This does seem high”. Could this suggest we’ll get a revised pricing structure down under?

The exact spec in question, the Dual-Motor AWD Long Range in Red actually has a driveaway price of US$50,990. Despite that, our price should still not be double the US. At the time of writing, US$50,990 converts to A$75,753.96, then add 10% GST and you’re at $83,329.356.

This price is also relevant to the upcoming Model Y launch, as the price of the mid-sized SUV is set to be a little more expensive than the Model 3.

Given most people in the mid-sized SUV market are used to paying around A$50K, it’s a massive ask to more than double their budget, in order to save the planet.

A price adjustment for Australia, could help increase EV sales here. While sales of electric vehicles are on the rise, they still account for a small number of overall sales in the country.

The Government could also help accelerate the transition to electric vehicles by removing Luxury Car Tax.

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Jason Cartwright
Jason Cartwrighthttp://techau.com.au/author/jason/
Creator of techAU, Jason has spent the dozen+ years covering technology in Australia and around the world. Bringing a background in multimedia and passion for technology to the job, Cartwright delivers detailed product reviews, event coverage and industry news on a daily basis. Disclaimer: Tesla Shareholder from 20/01/2021


  1. A price cut would always be nice, though having already paid the full whack a retrospective cut to the luxury car tax would be appreciated.
    I bought a Model 3 AWD/LR in France where it attracts a 10,000 Euro rebate, before tax. Then the 20% GST takes the shine off that! I ended up paying 54,000 Euro, not far off the AUD$92K I paid here.

    • I appreciate the feeling of pain seeing a product price drop shortly after one has purchased it.

      However, at present, people are predicting that EVs will reach price parity with ICE cars by around 2024/25. To get there, it is unlikely that the price drops will occur right at the end in the form of a single price drop. Instead, we ought to expect many incremental price drops over time.

      As for myself, I would be thrilled to see a price drop for Model 3s in Australia ASAP, even though I recently bought one.

      Any move towards an acceleration in the transition to sustainable transportation would give me satisfaction way beyond any monetary measure.

  2. Tesla 3 Long Range AWD in USA. USD: $55,990
    Conversion to Aussie: AUD: ~$83,330

    To actually buy in Australia Tesla 3 Long Range AWD
    in state of NSW: AUD $107,305 ($24,000 more than USA)

    However, it includes Luxury Car Tax of $6,119 and NSW Stamp Duty of $4,205
    So that would take the price to AUD $‭96,981‬ still AUD $13,300 more than USA.
    I’ll give them they have to ship it here, so how about they drop the price by AUD $10,000 ?

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