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
-
Elon Musk
Tesla AI boss reveals how big Optimus is going to get
Tesla’s Optimus chief corrected himself on X, confirming a staggering 10 million robot production target.
![Tesla Optimus Gen 3 [Credit: Tesla]](https://www.teslarati.com/wp-content/uploads/2026/03/tesla-optimus-gen3-diner.jpg)
Tesla’s Optimus program has a new number attached to it, after Ashok Elluswamy, the executive who has run the humanoid robot program since June 2025, posted a three word correction on X Thursday, “Correction, 10 million robots.”
The line clarifies the long term annual capacity Tesla is building toward its planned second Optimus production line at Gigafactory Texas, a figure Musk has cited repeatedly since last year’s shareholder meeting.
The scale is worth noting, because ten million robots a year would mean Tesla building more units annually than most countries sell in new cars. Tesla has framed this as a second line, not the first. The buildout is happening in two phases: a roughly one million unit per year line inside Tesla’s Fremont factory, installed on the floor space vacated when Model S and Model X production ended earlier this year, and a much larger dedicated facility under construction at Giga Texas that broke ground on its first steel structure in May. That Texas facility is the one Elluswamy’s correction refers to, and is expected to reach volume production sometime in 2027.
Correction, 10 million robots https://t.co/0z4nyQNTzp
— Ashok Elluswamy (@aelluswamy) July 30, 2026
Tesla Optimus project fires up as Musk sees production line progress
Elluswamy took over Optimus from Milan Kovac last summer and has spent the months since talking up the program’s trajectory. Elon Musk has also floated the ten million figure at Tesla’s 2025 shareholder meeting.
-
Ending Model S and Model X production to make room for the first Optimus line was one of the more consequential manufacturing decisions in the company’s recent history, retiring two flagship vehicles in favor of a robot that has yet to enter mass production. Musk has previously estimated per unit production costs at $20,000 to $25,000 once Tesla reaches a million units a year, though he hasn’t said what that cost looks like at ten times the volume.
The Trump Administration today made several key moves to help with the deployment of autonomous vehicles by cutting overreaching red tape that has stifled growth and innovation for years.
The moves, which were put forth by the National Highway Traffic Safety Administration (NHTSA), aim to grant temporary exemptions to at least one company currently, although that could expand in the coming months. Additionally, it will work with organizations to develop standards and a sound but efficient regulatory landscape.
Zoox is the only company mentioned explicitly by the Trump Administration in its press release announcing the new terms today. They will receive a temporary two-year exemption that will allow the commercial deployment of up to 2,500 vehicles annually for two years.
There is a potential exemption for Robomart, Inc., which “requests a temporary exemption from certain FMVSS No. 500 requirements for a low-speed vehicle operated by an ADS without a human driver onboard. NHTSA will publish a separate notice seeking public comment on its merits once the initial evaluation is complete,” the agency said.
Here are the five new terms that Secretary Sean Duffy has implemented through the NHTSA today:
- Allow Zoox to commercially deploy its robotaxis through a temporary exemption.
This temporary exemption will allow the commercial deployment of up to 2,500 vehicles annually for two years, subject to an enhanced, adaptable oversight structure that can evolve as Zoox’s technology advances. - Accelerate development of first-ever AV performance standards through a partnership with SAE Industry Technologies Consortia (ITC).
This partnership will fund a three-year, $5 million “A2SCEND” consortium, bringing together experts to gather data and accelerate creation of the first-ever AV performance standards. This project will inform a single national standard for AV safety to eliminate the patchwork regulatory landscape that has stifled innovation for years. - Publish an interim final rule that allows vehicles manufactured prior to an exemption to be eligible for a commercial deployment exemption.
This rule will modernize the application process and improve access to exemptions for innovators, including AV developers, by granting the NHTSA Administrator the discretion to apply temporary exemptions to vehicles manufactured prior to the effective date of an exemption grant. - Streamline the application process for Part 555 exemptions by updating guidance and soliciting feedback from the public.
By updating the Part 555 exemption process—which allows automakers to temporarily sell a limited number of non-compliant vehicles, primarily to test new technologies—NHTSA is aiming to create a more flexible oversight structure for exemptions and summarize recent AV framework activities, including expanded exemption pathways, streamlined crash reporting, and ongoing efforts to modernize Federal Motor Vehicle Safety Standards (FMVSS). - Establish a new Federal Docket for public feedback on NHTSA’s updated safe AV development and deployment guidance.
NHTSA is updating its technical guidance for AVs for the first time since 2017—focusing on key safety areas like emergency responder interactions, safety management systems, remote assistance, and post-crash behavior to help the industry scale up driverless deployments safely.
Additionally, the NHTSA said it has modernized some safety standards by proposing updates to:
- FMVSS 102 – Transmission shifting
- FMVSS 103/104 – Windshield defrosting and wiping
- FMVSS 110 – Tire placards
- FMVSS 135 – Braking systems
- FMVSS 101 – Controls and displays
- FMVSS 108 – Vehicle lighting
- FMVSS 111 – Mirrors and rearview display
- FMVSS 126 – Electronic stability control systems
- FMVSS 201/208 – Sun visors and warning labels
These changes aim to make the regulatory process for autonomous vehicles more streamlined and efficient, which could help the U.S. gain dominance over autonomous vehicle systems moving forward.
Elon Musk is, in many respects, one of the biggest and most influential figures in modern-day artificial intelligence.
Given that Tesla, SpaceX, and xAI are all looked at in their respective fields as leaders to an extent, each of them has a heavy influence on the future of AI, even though two of them are not thought of, at face value, as AI companies.
Musk has grand expectations for what is to come with AI, not only as a form of assistance to make human lives easier, but to make humans multiplanetary and solve some of the biggest issues that face us today. But even he is astounded by AI’s pace of progress.
He believes that in two years, AI will be so mind-blowing it might be unrecognizable.
Given that AI from 2 years ago feels so old that it should be in a museum, then obviously AI 2 years from now will be mind-blowing https://t.co/TcsKZ8o8OE
— Elon Musk (@elonmusk) July 30, 2026
This progress can be seen in a variety of ways, but perhaps the most popular way people have shown AI’s progress, especially on social media, is through an incredibly arbitrary way of watching Will Smith eat spaghetti:
-
The progression in AI of Will Smith eating spaghetti (2023 – 2026) pic.twitter.com/VDv82mB5gs
— internet hall of fame (@InternetH0F) February 10, 2026
This is a great way to show people how AI is improving, especially from a perspective that examines how it can manufacture images and video from prompts. AI is an incredibly complex concept, however, and it goes much deeper than Will Smith eating Italian food.
Musk’s most widely adopted method of AI is likely Tesla Full Self-Driving, which impacts millions of people as they utilize it to increase safety with their travel. Musk has routinely pushed incredibly aggressive timelines for self-driving, especially unsupervised.
Perhaps this perspective is why he feels that things will be solved in a timeframe that is much more aggressive than most of us would think. Regardless, the progress of AI is moving fast, and it seems that Musk’s expectations for it could be high.
But if it can actually achieve full-length motion pictures and even more realistic production value, it will be hard to distinguish between reality and AI very soon.
-
![Tesla Optimus Gen 3 [Credit: Tesla]](https://www.teslarati.com/wp-content/uploads/2026/03/tesla-optimus-gen3-diner-80x80.jpg)
Tesla AI boss reveals how big Optimus is going to get
Autonomous vehicle red tape gets slashed by Trump Administration
