Tesla launches its “most affordable” Model 3 electric sedan yet, starting at under $A43,000

Tesla has introduced its most affordable Model 3 variant yet in the Canadian market, with the new Premium Rear-Wheel Drive (RWD) model starting at approximately CAD 42,132 (under A$43,000). This release marks a significant price reduction, attributed largely to recent tariff cuts on Chinese-made electric vehicles, which benefit Tesla’s Shanghai factory production. The new Model 3 Premium RWD also boasts improved performance, shaving a full second off its 0-100 km/h acceleration time compared to previous versions. The updated Model 3 retains a top speed of 201 km/h but features a slightly reduced EPA-rated range of 463 km, which translates to over 500 km on the WLTP cycle commonly used in Australia. The enhanced acceleration is likely due to either an upgraded battery pack with a higher energy discharge rate or a more powerful rear drive unit. Additionally, the vehicle comes equipped with Tesla’s Full Self-Driving (FSD) Supervised technology, which can be subscribed to for CAD 99 per month and includes recent software improvements such as autonomous navigation to and parking at Supercharger stations. In contrast, Tesla’s Australian market has not seen a price reduction for the Model 3 in over 18 months, with the Premium RWD variant currently priced at $55,900 before on-road costs. Despite this, sales have increased in the first four months of 2026, partly driven by rising fuel prices and limited local inventory. Unique to Australia, Tesla offers a five-year unlimited-kilometre warranty on new Model 3 and Model Y purchases, an upgrade from the previous four-year or 80,000 km coverage, alongside competitive fast-charging rates through its extensive Supercharger network. The introduction of this more affordable Model 3 in Canada is expected to bolster Tesla’s sales by leveraging favourable market conditions and tariff exemptions for up to 49,000 Chinese-made EVs. This strategic pricing move could influence other markets, including Australia, where incentives and warranty improvements continue to support Tesla’s position amid growing demand for electric vehicles. The new variant underscores Tesla’s ongoing efforts to make electric cars more accessible while enhancing performance and autonomous driving capabilities.