The Australian electric vehicle landscape is aggressively shifting. Value-focused brands like BYD have been heavily chipping away at market share by offering compelling electric options well under the fifty-thousand-dollar mark.

For a while, it seemed traditional heavyweights were comfortable letting the budget segment go, but Tesla had to respond to that mounting pressure. Today, they dropped their counterpunch. The local lineup has expanded with a new entry-level Model 3 Rear-Wheel Drive variant starting at an incredibly sharp A$45,900 before on-road costs.

When you factor in Tesla order and delivery fees along with Victorian stamp duty for green passenger vehicles and standard registration charges, you are looking at a drive-away price of around A$50,600.

This massive shake-up pulls the entry price point down significantly lower than what we are used to seeing for a brand-new Tesla in Australia, making it a highly attractive option for budget-conscious buyers who want access to the broader Supercharger network without paying a premium price tag.

What is different about the new base model

Dropping the entry price by A$9,000 compared to the Premium Rear-Wheel Drive means some features had to hit the cutting room floor. Tesla has been quite surgical here, pulling out luxury touches while protecting the core driving experience.

Inside the cabin, the most obvious omission is the 8-inch second-row touchscreen. Rear passengers now get manual-adjust air vents instead of touchscreen-controlled climate settings and miss out on rear heated seats entirely.

Up front, the steering wheel is now manually adjustable rather than powered, and the seats use vegan leather with textile inserts instead of the fully perforated material found in the higher trims. The front seats remain heated but lose the ventilation function.

Audio and connectivity also take a notable hit. You get a seven-speaker audio setup instead of nine, and the FM and DAB radio capability has been removed entirely.

This leaves you reliant on cellular data, Wi-Fi, and Bluetooth for streaming your media. In regional areas with spotty mobile reception, the lack of traditional radio might be a genuine frustration, so you will want to keep your phone loaded with downloaded podcasts and offline playlists.

On the hardware side, you are riding on 18-inch Prismata wheels and passive shock absorbers rather than the noise-reducing frequency-selective suspension found on the Premium trim. The side-view mirrors are power-folding but skip the auto-dimming feature, and the customisable wraparound ambient interior lighting is gone, although standard footwell lighting is still present.

What is still included

Despite these cuts, it certainly does not feel like a stripped-out compliance car. In a surprising twist, this cheapest variant actually beats the Premium Rear-Wheel Drive on range. It offers an impressive 572 kilometres of WLTP range from its battery, while still delivering a snappy 0 to 100 km/h sprint in 6.2 seconds.

The core technology that defines the modern Tesla experience remains intact. You still get the massive 16-inch front-row touchscreen, eight exterior cameras for comprehensive vision, and basic Autopilot included as standard. The large panoramic tinted glass roof, hands-free power boot open on approach, and phone-first key access via the Tesla app are all retained.

It also features vehicle-to-load capability, allowing you to output 230V 15A AC power to run tools, camping gear, or appliances, though you will need to buy the Tesla Outlet Adapter separately.

Software subscriptions and charging hardware

Tesla is clearly using this lower entry price as a gateway to its software services. Full Self-Driving (Supervised) is available as an optional monthly subscription for A$149. Having spent years driving a Model 3 Performance and regularly testing FSD updates, I can confidently say that moving to a subscription model is a far more pragmatic approach. It allows buyers to test the evolving software on local roads without paying thousands of dollars upfront. You will also need to factor in the ongoing monthly cost for Premium Connectivity if you want live traffic visualisation and seamless cellular streaming for that central display.

Remember that a mobile connector or wall charger is not included in the purchase price. You will need to budget extra if you are setting up your home charging infrastructure from scratch.

When it comes to looks, Pearl White multi-coat is the only included colour. Upgrading to Diamond Black costs an additional A$1,500, while Stealth Grey will add A$1,900 to your bill. The press materials also mention the introduction of a new Glacier Blue paint option for this model.

"Model 3 Rear-Wheel Drive is the most affordable way for Australians and New Zealanders to own a Tesla, and the most accessible way to experience Full Self-Driving (Supervised)."

• Thom Drew, Country Director Australia & New Zealand.

Configurators go live today, with the first Australian customer deliveries expected to commence from mid-October.

For more information, head to Tesla.