Tesla’s cheaper Model Y hits Europe, but Australia still out of reach

Tesla’s budget Model Y hits Europe with FM radio, but Australia misses out.

Megan C

Megan C

October 13, 2025

Access Time

3 mins read

Comment

0 comment

Share

0 shares

Copy URL
URL Copied
Megan C
Megan C

13 October, 2025

Access Time

3 mins read

Tesla has rolled out its more-affordable Model Y Standard to Europe, giving buyers a chance to get behind the wheel of the electric SUV without splashing out on the premium version. While the US version of this budget Model Y stripped back several features, the European iteration keeps some useful comforts intact, though Australians will have to wait, as no right-hand drive version has been announced.

Tesla Model Y

Pricing – How much cheaper is it?

The Model Y Standard for Europe starts at €39,990 ($AU71,500), which is roughly €10,000 ($AU18,000) cheaper than the Model Y Premium (€49,990 / $AU89,000). For context, here’s how it stacks up globally:

MarketModelPriceDifference vs Premium
EuropeModel Y Standard€39,990 ($AU71,500)€10,000 ($AU18,000) cheaper
EuropeModel Y Premium€49,990 ($AU89,000)
USAModel Y Standard$US39,990 ($AU61,500)$US5,000 ($AU7,500) cheaper
USAModel Y Premium RWD$US44,990 ($AU69,000)

The European spec-sheet- What you gain and what you lose

Tesla Model Y

Built at Tesla’s German Gigafactory for select European markets, the Model Y Standard starts at €39,990 (approximately AU$71,500). This undercuts the existing model, now rebranded as the ‘Model Y Premium,’ by a significant €10,000 (AU$18,000).

Interestingly, the European version of the Standard Model has retained a few key features that were axed from its American counterpart. European buyers have drawn a line in the sand on a few creature comforts.

What stays in (The European wins):

  • FM Radio Tuner
  • Basic Autopilot Lane-Centring
  • Power-Folding Side Mirrors

What gets the chop (The Universal cuts):

To achieve its aggressive pricing, Tesla has removed a host of features common to both the US and European Standard models. The deletions are comprehensive, targeting both convenience and aesthetics.

Feature CategoryTesla Model Y StandardTesla Model Y Premium
Exterior


Deleted front/rear LED light strips; 18-inch ‘Aperture’ wheel covers (over-reported steel wheels)Full LED lighting; alloy wheels
Interior comfortManual steering wheel adjustment; cloth/leatherette seats; deleted ambient lighting, 8-inch rear touchscreen, and ventilated/heated rear seatsPower steering wheel adjustment; premium leatherette; ambient lighting; rear screen; ventilated/heated seats
Other‘Closed’ roof with headlining (non-transparent glass)Panoramic glass roof

Why Australia isn’t on the list

Tesla Model Y

For Australian customers, the expansion to Europe is a case of so near, yet so far. The local arm of Tesla has confirmed the Model Y Standard is not on the agenda for Australia. The reasons are logistical and fundamental:

  • Sourcing: Australian Model Y vehicles are sourced from Tesla’s factory in Shanghai, China. The Model Y Standard is currently only built in the US and Germany.
  • Driving Side: Crucially, a right-hand-drive version of the Model Y Standard has not been developed, effectively locking it out of the Australian, UK, and Japanese markets for the foreseeable future.

As a result, the Australian lineup remains unchanged, starting just below AU$70,000. For now, a sub-AU$60,000 Tesla SUV remains out of reach.

Final take

The Model Y Standard is a smart, budget-friendly option for Europeans who want Tesla’s electric performance and tech without splurging on premium extras. While it trims some comforts, it keeps key features like lane-centring and FM radio, balancing cost and usability.

For Australians, though, the Model Y Premium remains the only Tesla SUV option, meaning the dream of a more affordable, fully-featured Model Y remains distant.

Comments

Subscribe to our news letter to get latest updates and news