News
Tesla details plan for increased Model Y pricing stability in Australia
As Chinese automakers increasingly deploy low-priced EVs in the Australian market, one Tesla executive explains one way the company plans to stay competitive.
A Tesla executive managing the Australian and surrounding markets has detailed the company’s plans to move away from rapid pricing changes with the arrival of the new Model Y, especially as electric vehicle (EV) competition from other Chinese automakers arrives in Australia and surrounding markets.
Thom Drew, Tesla’s Country Director for New Zealand and Australia, said in an interview with Chasing Cars on Friday that the recently refreshed Model Y will make it to Australian markets with more consistent pricing. The statement comes after the Model Y remained Australia’s best-selling EV in 2024, and he says that the era of the Tesla price war seems to be winding down as the SUV gets more affordable.
“We are certainly not going to get into price wars,” Drew said. “I know we have famously been known for changing our prices rapidly over the past several years.
“I really think we have gotten to a point with our pricing where it is where it should be. Once we release the general production pricing for Model Y, I think we are at a really good point. Particularly with the refinements on the [upgraded] vehicle, it is exceptional value for money.”
First deliveries of the Launch Edition Model Y refresh are expected in May, and Drew says initial shipments will be large in volume to match significant demand for the EV. The executive also confirmed that the highly-coveted rear-wheel-drive (RWD) model, the Launch Edition of which is currently sold out, will go on sale again as the regular edition in the weeks to come.
At the time of writing, you can still order the Launch Edition configuration of Tesla’s Long Range, all-wheel-drive (AWD) Model Y on its online order configurator.
READ MORE ON TESLA’S NEW MODEL Y: Australia’s top car website gives Tesla Model Y and Model 3 its best EV awards
It’s not clear at this time if Tesla plans to employ similar strategies in markets beyond the Asia-Pacific, though Drew highlights the pricing stability efforts as a necessary measure to remain competitive amongst incoming EVs from Chinese automakers. Between this and optimizing consumer experiences by making great vehicles, the executive explains that the company remains intent on holding onto its number one seller spot.
“We need to make sure we are hyper-focussed on the quality of our products and our competitiveness,” he says. “[We need to] be looking around today and making sure that we have the best ownership experience to keep our brand at the number-one point.”
At this point, Drew also says that the Model Y is the most affordable option in the Australian market, highlighting that keeping the price stable should hold competitors off for the foreseeable future, at the very least. The news also comes as reports say that Tesla may already be looking to launch an even cheaper Model Y in China, which could make the vehicle even more competitive with future iterations.
“At the moment, there is no cheaper model that I am aware of,” Drew adds. “If there was one, absolutely [we would have our hand up].”
The Australian market requires right-hand-drive (RHD) vehicles, meaning that they drive on the left side of the road and are equipped with steering wheels on the right side of the automobile. Tesla’s Gigafactory in Shanghai supplies the markets in Australia, New Zealand and multiple surrounding regions throughout the Asia-Pacific.
Tesla launched the upgraded Model Y in China in January, after months of speculation that the refreshed SUV would soon be launched. The automaker began initial deliveries of the Launch Edition Model Y refresh in China last month, officially transitioning to the sale of the regular edition of the vehicle at the beginning of March.
Australia has received 107k of Tesla’s 1 million exports from Giga Shanghai: report
News
Tesla Full Self Driving (FSD) is nearing approval in a new country
As per the official, Tesla’s Full Self-Driving system could be enabled in Israel in the near future.
It appears that Tesla FSD (Supervised) is heading to a new country soon, at least based on comments from Israel’s Transport and Road Safety Minister Miri Regev.
As per the official, Tesla’s Full Self-Driving system could be enabled in Israel in the near future.
Israeli drivers are pushing for FSD rollout
While Tesla’s FSD is already operational in markets like the U.S., Canada, and Australia, Israeli owners have long been unable to use the feature due to regulatory barriers. Despite its premium price tag, however, numerous Tesla owners in Israel have noted that the technology’s safety benefits, at least when approved for real-world use in the country, justify its cost.
It was then no surprise that nearly 1,000 Tesla owners in Israel have already petitioned the government to greenlight FSD’s domestic release in Israel. In a post on X, Regev seemed to confirm that FSD is indeed coming to Israel. “I’ve received the many referrals from Tesla drivers in Israel! Tesla drivers? Soon you won’t need to hold the steering wheel,” she wrote in her post.
FSD’s regulatory support in Israel
Regev stated that her Ministry views promoting innovative technologies as essential to improving both road safety and smart mobility. A working group led by Moshe Ben-Zaken, Director General of the Ministry of Transportation has reportedly been tasked to finalize the approval process, coordinating with regulatory and safety agencies to ensure compliance with international standards.
In a comment to Geektime, Israel’s Ministry of Transportation and Road Safety noted that Regev is indeed supporting the release of FSD in the country. “Minister Regev sees great importance in promoting innovative technologies, and in particular in the entry of advanced driving systems (FSD) into the Israeli market, as part of the ministry’s policy to encourage innovation, safety, and smart transportation,” the Ministry stated.
Investor's Corner
Bank of America raises Tesla PT to $471, citing Robotaxi and Optimus potential
The firm also kept a Neutral rating on the electric vehicle maker, citing strong progress in autonomy and robotics.
Bank of America has raised its Tesla (NASDAQ:TSLA) price target by 38% to $471, up from $341 per share.
The firm also kept a Neutral rating on the electric vehicle maker, citing strong progress in autonomy and robotics.
Robotaxi and Optimus momentum
Bank of America analyst Federico Merendi noted that the firm’s price target increase reflects Tesla’s growing potential in its Robotaxi and Optimus programs, among other factors. BofA’s updated valuation is based on a sum-of-the-parts (SOTP) model extending through 2040, which shows the Robotaxi platform accounting for 45% of total value. The model also shows Tesla’s humanoid robot Optimus contributing 19%, and Full Self-Driving (FSD) and the Energy segment adding 17% and 6% respectively.
“Overall, we find that TSLA’s core automotive business represents around 12% of the total value while robotaxi is 45%, FSD is 17%, Energy Generation & Storage is around 6% and Optimus is 19%,” the Bank of America analyst noted.
Still a Neutral rating
Despite recognizing long-term potential in AI-driven verticals, Merendi’s team maintained a Neutral rating, suggesting that much of the optimism is already priced into Tesla’s valuation.
“Our PO revision is driven by a lower cost of equity capital, better Robotaxi progress, and a higher valuation for Optimus to account for the potential entrance into international markets,” the analyst stated.
Interestingly enough, Tesla’s core automotive business, which contributes the lion’s share of the company’s operations today, represents just 12% of total value in BofA’s model.
News
Tesla Model Y on FSD saves couple after encountering King of edge cases
Experts have noted that if confirmed, this could be the world’s first recorded meteorite collision involving a Tesla.
A South Australian Tesla driver is thanking his Model Y’s Full Self-Driving system after a mysterious object, possibly a meteorite, slammed into his car’s windshield while it had FSD engaged.
The impact sent hot glass fragments flying through the cabin as the vehicle continued driving without human input through the darkness. Experts have noted that if confirmed, this could be the world’s first recorded meteorite collision involving a Tesla.
The Tesla owner was enjoying a quiet drive home when they hit the king of edge cases
Veterinarian Dr. Andrew Melville-Smith and his wife were traveling north on Augusta Highway on the night of October 19 when a sudden blast struck their newly delivered Model Y. At the time, it was clear, pitch black night, and Dr. Melville-Smith and his wife were just listening to a podcast while FSD was operating the vehicle, as noted in a Yahoo News report.
Suddenly, something hit the Tesla’s windshield. “Then there was, (what) I can only describe as a very, very violent explosion. The whole inside of the car was literally blasted with glass fragments. It was full of white smoke, and it smelled like the car was on fire,” Dr. Melville-Smith stated.
The vet stated that he and his wife were stunned for a good 10 seconds, and for a bit, he and his wife thought they had crashed. Images of the crash’s aftermath showed a massive crack on the Tesla’s windshield, which Dr. Melville-Smith noted was hot to the touch. The object that hit the Tesla’s windshield was so hot that part of the vehicle’s windshield was partly melted.
FSD kept driving despite the possible meteorite strike
Thankfully, the Tesla was operating with its FSD (Supervised) system engaged at the time. Thus, despite the vehicle being hit by what might be a literal meteorite, and despite Dr. Melville-Smith and his wife being stunned because of the impact, their Tesla just kept driving steadily.
“I thought we’d had an accident, but then I looked at the screen and went ‘Oh, we’re still driving. We were moving around, so it obviously thought we were paying attention, and it was happy to keep driving to Port Augusta. After we pulled over, we saw the big crater in the windscreen,” the vet said.
The South Australian Museum is now examining the case, with geologist Dr. Kieran Meaney stating the scorched glass and heat damage do suggest a potential meteorite strike. “The little detail that’s really selling it for me at the moment is that whatever it was that hit the windscreen seems to have been very hot,” Meaney explained. However, the object has yet to be recovered.
Check out a video of the remarkable edge case below.
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