DEEP DIVE: New Tesla Model Y

Today, the highly anticipated refresh of the Tesla Model Y was officially unveiled and there’s a LOT to unpack.

When updating a vehicle, Tesla doesn’t do things by halves. This isn’t just a new front bar each year, instead they typically make small running changes to the production along the way and every 4-5 years then implement a big set of features that combine to make a significantly better refreshed product.

That big refresh is happening now!

There’ll be no mistaking the new from the old, with the new front and rear designs boldly showcasing LED lightbars to light the road ahead and let other road users know they’re following a Tesla.

The New Model Y may have some visible changes, but underneath there’s a whole lot more to the story, with re-engineering, improvements in refinement, efficiency, and safety.

Building on the improvements brought to Upgraded Model 3, the New Model Y introduces an updated exterior and interior, better handling, improved aerodynamics, superior ride comfort and daily functionalities.

Tesla says that every detail of the New Model Y has been designed with efficiency in mind, ensuring that each aspect of the vehicle is optimised for a seamless and enjoyable driving experience.

Here are just some of the changes and improvements.

Front and rear lightbars designed to increase aerodynamics, efficiency, and range.

Refined interior with customisable wrap-around interior lighting, soft-touch finishes, a 15.4-inch touchscreen and ventilated front seats.

Power-reclining second-row seats that fold flat, plus an 8-inch Bluetooth-enabled rear touchscreen.

Acoustic glass keeps road noise out and your music in.

Updated suspension offers smoother handling, added comfort, more responsive steering, and a quieter ride.

There’s also a new Glacier Blue paint option; a cool shade of blue that mimics the hues of ice and snow found in glaciers.

Exterior

The New Model Y features noticeable exterior updates, such as full-width lightbars at the front and rear of the vehicle, giving Model Y a bold look inspired by Cybertruck and Cybercab designs.

The rear lightbar is a world-first application of an indirect, externally-reflected lighting system that projects the rear lamp function onto a custom applique. The rear lightbar is a single cross-car lamp, making it one of the largest in the industry at 1.6m.

The New Model Y also sets the record for the lowest level of brake drag achieved amongst all Tesla vehicles, helping unlock more regenerative capability and resulting in an estimated 5% range increase with the same battery energy.

In markets outside Australia, the New Model Y is offered with new 19″ Crossflow wheels, while Australia gets just a single option for now, the 20″ Helix 2.0 wheels.

These are are some of the most efficient designs Tesla has ever created, contributing to aerodynamic and range improvements while also providing a smoother driving experience and enhanced levels of grip.

Interior

The New Model Y features a comprehensively upgraded interior.

The customisable ambient lighting with an embracing design creates a sense of wider interior space, making you feel like you’re in a more spacious vehicle.

New Model Y now comes standard with a new 8″ second-row display. Rear passengers can enjoy climate controls, gaming, and video/audio streaming while Bluetooth device connectivity provides the ability to choose different media options from front to rear.

The New Model Y provides effortless control with a precision-engineered indicator stalk, thoughtfully refined based on valuable customer feedback. We’ve improved ergonomics and usability by introducing customisable steering wheel switches, allowing quick and intuitive operation of the most frequently used vehicle functions to better meet drivers’ needs.

The front seats come standard with ventilation and feature Tesla’s patented design. The rear seats have been upgraded with longer cushions and an optimised headrest design, providing better support and comfort for long trips.

The new rear seats also feature electric recline adjustment, allowing passengers to adjust the backrest angle to their liking using buttons on the sides of the seat.

The new glass roof and windshield coatings now reflect 7x more solar energy, resulting in quieter fan operation, faster cooling times and improved occupant comfort.

Tesla’s Airwave 2.0 ventilation system is now available in both the first and second rows for improved cabin airflow.

The upgraded Tesla sound system has enhanced the mid-range door speakers, providing more detailed sound and clearer acoustic direction. New Model Y Long Range All-Wheel Drive is equipped with an upgraded version of Tesla’s industry-leading Premium Audio system, which consists of 16 speakers including a powerful subwoofer.

We’ve also learned that the frunk will now feature a drain hole, similar to Ford’s F150 Lightning, allowing you to place ICE for drinks, or just wet clothes and accessories after a swim.

Technology and Safety

Model Y was already the most efficient SUV in its class, but Tesla managed to unlock significant improvements in energy consumption by revisiting almost every single subsystem that consumes energy.

The overhaul of ride and handling hardware results in a 22% reduction in road noise, a 20% reduction in impact noise and a 20% reduction in wind noise, making new Model Y a class leader.

The new Model Y’s safety and intelligent configuration builds upon the strengths of its predecessor, which was widely praised globally. The vehicle features a large crumple zone, single-piece casting, Autopilot HW4.0 hardware and active safety functions, all of which are standard across the range.

A new front camera has been added under the front bumper, allowing drivers to better view the front of the vehicle when parking or performing low-speed manoeuvres.

Additionally, the camera includes a self-cleaning function, which uses a water jet to keep the lens clean.

Launch Series

We’re familiar with the Cybertruck Foundation Series, but now we’ve got a new limited spec with the New Model Y, known as the ‘Launch Series’.

Tesla doesn’t say how many units or how long this will be available for, but you should know it’s not an option, all of the first set of 2025 Model Ys will include it, which may account for A$3,000+ of the price tag increase.

For the money, you get to chose from all 5 paint options at no additional price.

When we consider the Ultra Red paint was a A$2,600 option, combined with acceleration boost, makes the price tag look more inviting, assuming you were already chasing those upgrades.

There’s also 20” Helix 2.0 wheels included as standard, while the previous 20″ Induction wheels were priced as a A$2,400 option.

This means we’re now totalling up to A$8,000 in bonuses as part of the Launch Series ($3k + A$2.6k + A$2.4k).

Along with these items, you’ll also get exclusive Launch Series badging on the rear liftgate, puddle lamps, doorsill plates and more.

Performance

The Model Y performance has always been better than many ICE vehicles, so all Tesla’s are fast, this one just got a little faster.

The 2022 Model Y RWD that we have, accelerates from 0-100km/hr in 6.9 seconds.

The new 2025 Model Y RWD will now improve that by a full second to 5.9 seconds. This may not be a motivator for all buyers, but when you experience the acceleration leaving an intersection, entering a freeway or overtaking, it’s a great attribute of the car.

When we step up to the Long Range AWD that uses dual electric motors to propel you forward, you’ll speed from 0-100km/h in a very impressive 4.3 seconds, down 0.7 seconds.

The additional performance can be attributed to the new Launch Series which includes the Acceleration Boost. This Acceleration Boost had cost A$3,000 in Australia and reduced the 0-100km/h time from 5 to 4.4s.

This was only available on the Long Range before, but this Launch Series acceleration boost is now present on the entry level RWD, suggestion there’s been work done on the electric motors and battery pack to achieve this.

The New Model Y’s suspension retains its signature support while being tuned for greater comfort. Compared to the 2024 Model Y, the new model’s ability to absorb bumps on rough roads has improved by 51%, making every drive a comfortable experience for both driver and passengers.

Controversial decisions

The Model Y is an insanely popular car, in fact it was the highest selling vehicle in 2023, not just electric, but of all cars.

Given the scale of millions of units sold into many markets across the world, Tesla needs to be very careful when making a change to this cash cow as a mis-step here could have significant impacts to the bottom line.

The opposite side of the risk coin is that a change could attract new buyers if they make the changeset appealing to more buyers and of course those existing owners looking to upgrade.

Having gone through the announcements, the website and the online reaction, it’s clear there are some interesting decisions made with the Model Y that perhaps many weren’t expecting.

Design

The lightbars front and rear are obvious refreshes that align well with Tesla’s design direction with Cybertruck and Cybercab Robotaxi. The Model 3 refresh features this ame lightbar on the front and given the 3/Y pair share so many parts, this is an obvious efficiency.

When it comes to the rear Franz and the team got way more creative in a way we haven’t seen on the 3. The rear lightbar includes the TESLA lettering, replacing the single Tesla logo found on the current MY. The lower section will now house the number plate and has grown in height to achieve this. That leaves a large flat section on the boot that is simply flat and personally I think could have been resolved better. I have no doubt there’s some amazing aerodynamic efficiencies that led to this decision, but I’d happily sacrifice 5kms of range for a better looking vehicle (i.e. driving without wheel caps on the M3).

Stalks

When Tesla refreshed the Model S and X (no longer sold in Australia), they removed the stalks, when the refreshed the 3, they removed the stalks and when the finalised and released the cybertruck, they did so without gear selector and indicator stalks.

In what is a strange directional shift, Tesla have decided to go against that decision and add them back in the New Model Y for 2025.

We have confirmed this decision was based on user feedback and while that’s fine, the feedback to date was about the refreshed Model 3 and yet it continues to ship without them.

This definitely feels like they got nervous enough about the stalkless design controversy that they felt it would impact sales and that wasn’t something they were willing to push hard on.

What I find interesting is this decision is being made a time where Tesla’s FSD (Supervised) is getting really good and the last timeline we heard, was about to head for international expansion in Q1 2025.

In the past couple of days, Musk was interviewed and said the already have FSD Unsupervised cars in testing, so why are we seeing stalks that drivers would operate, when we’re 11 minutes to midnight on autonomous vehicles being a reality? That is a weird one.

Of course Tesla isn’t locked into this decision, they could easily replace them and remap the steering wheel button with a future revision when FSD ships into the Asia-Pacific markets like Australia.

Personally I think Tesla could implement auto-indicators now, for those times you have a route set.

Wheels

Tesla’s famous for having a very simple ordering experience. That simplicity comes from limiting the number of options you have at checkout. While you can select from 5 vehicle paint colours, and the black/white interior option, you no longer get the choice of wheels.

This is particularly disappointing for those of us who like dark/black rims. Above is a side-by-side of how the same 20″ rim could look in a darker finish.

Front camera

Another inconsistency in the model lineup is the front-facing camera, integrated into the front bar. This is present and first arrived in the Cybertruck, but that mad a lot more sense given it’s used for visibility during off-roading.

Technically the Model Y could partake in some off-roading of its own, but it feels like a strange decision when we constantly hear about Tesla trying to reduce part counts and if it wasn’t there, I’m not sure a single sale would fall away as a result.

What is important to clarify is that this also is not going to be used as part of the Autopilot/FSD suite.

If we think back to the M3 images prior to its release, we also seen vehicles with the lower front-facing camera, but ultimately it was removed before customer sales.

Pricing

Tesla’s sales in Australia have tapered off in 2024, with interest rates remaining stubbornly high and many state incentives for EVs being stopped.

I was personally very hopeful that we’d see production and scale efficiencies with a Model Y refresh that could see the entry level price tag reduce, despite the new additions.

Unfortunately that wasn’t the case, with the price tag increasing by around $5k, but there is more to the story.

Rear-Wheel Drive The entry level Model Y now starts at A$63,400 (A$68,770 driveaway).

Long Range All-Wheel Drive Those looking for more range and/or and AWD drivetrain, will need to find A$73,400 (A$79,270).

Performance As it stands today, there is no longer a Model Y Performance available in Australia, however this did occur when the Model 3 was refreshed and ultimately it returned, so this may be a matter of wait and see for those looking for a SUV supercar.

Deliveries are expected to begin in May. Given the switch on the website today to the New Model Y, and the price reductions on Inventory items, it’s possible that we see a number of months where you can’t actually get a Model Y in Australia, a very strange place to be in, you’d definitely not want to be in an accident during that time.

As I covered recently, Tesla now includes a choice of charging options during checkout. The Home Wall Charger (requires installation by an electrician) costs A$800 and the Mobile charger A$550.

Buy with a Referral link

If you are ordering a Tesla, make sure you save some $$ by using a referral link like this – https://ts.la/jason45054 which in Australia will score you A$300 off the price of a new or inventory vehicle.

There is no way to attack this retrospectively, so you need to visit the Tesla site via the link and make your purchase for it to apply.

Was it rushed?

If you’ve made it this far, nice work. There’s a couple of elements of this launch that feel a little rushed.

Included in the Tesla AU site are a number of images that are clearly US-based, these are typically tailored at least to the LHD/RHD markets.

In the example of the mobile app, we see the refreshed Model Y although the climate is showing Fahrenheit instead of celsius.

Things get a little more obvious when we see images of the steering wheel on the left and finally an image of the New Model Y charging from a wall connector, using the NACS connector, rather than the Type 2 connector found in Australia.

I expect the leaks may have motivated Tesla to accelerate the release of the product, even by a few days.

Overall

So this is it, the big Model Y refresh is here, it’s insanely important to Tesla that this goes well, and for those customers holding off buying a Model Y until you seen it, now you have and hopefully this article helps you understand what the changes and improvements are.

I’m seeing a lot of users on X share their orders, so day 1 is likely to be very positive, the real test will be how the next couple of months play out.

The Model Y, being a mid-sized SUV appeals to many families around the world and the benefits of being all electric mean dramatically lower ongoing costs. The software experience, combined with storage, safety and many other attributes all combine to make it a seriously compelling offer, even if I wish it was a little cheaper.

The refresh is exciting for the Model Y, but that will likely be overshadowed by any significant progress in the FSD story as that fundamentally changes the way we do transport and if you own one of these cars, you’ll have a first row seat for how that rolls out, experiencing regular over-the-air software updates.

As you’d expect Standard Autopilot is included with the MY. There’s no change to Enhanced Autopilot (A$5,100) and Full Self-Driving Capability (A$10,100) at this stage.

Let us know in the comments if you’ve ordered, are considering ordering, or have questions, comments, thoughts about the New 2025 Model Y.

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