Tesla reworked its Australian and New Zealand line-up on 1 October, and the two ends of it moved for different reasons. A new entry-level Model 3 drops the cheapest Tesla sedan by A$9,000. At the top, the Model Y Performance falls A$4,500 — because Tesla stopped shipping it from Germany.

The cheap Model 3 is a de-contented one

The new Model 3 Rear-Wheel Drive starts at A$45,990 in Australia and NZ$54,900 in New Zealand, before on-road costs. The car it sits below, the Model 3 RWD Premium, was A$54,990.

The A$9,000 does not come from nowhere. Tesla has taken equipment out.

Model 3 RWD (new entry) Detail
Price A$45,990 / NZ$54,900
Range 572 km WLTP
Battery 60 kWh
0-100 km/h 6.2 seconds
Removed Rear touchscreen, ambient lighting, premium seat materials
Seats Flat-woven textile and vegan leather
First deliveries Mid-October 2026

That is the same recipe Tesla used for the Model Y Standard, which stripped light bars, ambient lighting and sound deadening to reach a lower price in Europe in May. Tesla Australia has not adopted the "Standard" name, but the car is built the same way: keep the battery and the drivetrain, remove the things buyers can see.

The 572 km WLTP figure will be familiar to European readers. It is the same rating Europe's base Model 3 picked up in August when Tesla switched it to low-rolling-resistance Giti tyres.

The Premium and Performance trims were not repriced, but they do gain the hardware from the Shanghai update: a 16-inch front screen, a dark headliner, and Zen Grey as an interior option on the Premium. Model 3 Performance range rises 29 km to 600 km WLTP. All new cars get Vehicle-to-Load through an adapter, the feature that arrived on the 2027 model year Model 3 this week.

The Performance cut is a Giga Berlin story

The Model Y Performance drops from A$89,400 to A$84,900, and from NZ$100,900 to NZ$95,900. Tesla's own announcement gave no figure and no reason. Australian outlets supply both: the car moves from Giga Berlin to Giga Shanghai for the 2027 model year.

Model Y Performance Before From 1 October
Australia A$89,400 A$84,900
New Zealand NZ$100,900 NZ$95,900
Built in Giga Berlin Giga Shanghai

Every other Model Y sold in Australia has come from Shanghai since 2022. The Performance was the exception, shipped from Grünheide since it launched there, and it is the exception no longer.

For European owners this is the part worth noting. Giga Berlin has spent 2026 running short of its 7,500-cars-a-week target and agreeing special shifts to close the gap. Losing a right-hand-drive export line does not help a plant that is already under its number — though it also frees capacity for the European market the plant primarily serves, and Tesla has said nothing about which of those it intends.

The Performance also gains Glacier Blue paint and a Zen Grey interior, with paint becoming a cost option as it already is on other Model Y grades.

What this does not mean for Europe

Nothing here has been announced for Europe, and the two moves do not travel equally well. A production switch to Shanghai is specific to markets Shanghai already supplies; Europe's Model Y Performance is the Berlin car. A cheaper de-contented Model 3, by contrast, is a lever Tesla has now pulled in the United States, and now in Australia and New Zealand.