Tesla raises prices as new Model Y arrives

This year’s must-have electric car has leapt in price within days of going on sale in Australia, as the brand concedes it underestimated local demand.

The 2022 Tesla Model Y is now on sale in Australia.

Tesla has increased Australian prices for the new Model Y by more than $3000 within days of the car going on sale.

The more spacious cousin to Australia’s best-selling electric car, Tesla’s Model 3, officially went on sale in June.

Tesla’s Model Y adds a more practical body to the Model 3’s running gear.

Delivery times quickly blew out to May 2023 as Tesla founder Elon Musk conceded the car maker “didn’t expect demand to be so high”.

The entry-level Tesla Model Y Rear-Wheel-Drive now costs $72,300 before on-road costs, up $3400 from its initial $68,900 price tag, or about $78,000 drive-away.

The all-wheel-drive Model Y Performance costs about $104,000 now, or $109,500 drive-away – around $3000 more than before.

Tesla’s Model 3 has also increased in price by $1600 to $65,500 plus on-road costs, up from $59,900 in July 2021.

The Tesla Model Y features a huge central touchscreen.

Other changes to the range include the addition of a new “enhanced autopilot option”. It delivers Tesla’s “navigate on autopilot” feature that links its driver assistance software to programmed routes, along with automatic lane changes and self-parking functions.

Priced from $5100, the option almost halves the eye-watering $10,100 charged for “full self-driving capability” that can stop at traffic lights or stop signs.