2027 Tesla Model Y Performance gets $4500 price cut amid move to Chinese sourcing

The model year 2027 (MY27) Tesla Model Y has been updated for Australia, with a $4500 price cut for the flagship Performance version alongside minor spec changes and the arrival of Powershare.

It's available to order from October 1, 2026.

The Tesla Model Y was Australia’s best-selling vehicle of all types in August 2026, having become the first electric vehicle (EV) to top the monthly sales charts when it beat the Ford Ranger to first place in May 2026.

The MY27 updates see the Model Y Performance drop to $84,900 before on-road costs, down from $89,400. In New Zealand, the price is now NZ$95,900 before on-roads, previously NZ$100,900.

The reduction comes as local Model Y Performance shipments switch from Germany to Tesla’s Shanghai, China factory, where the rest of the Australian Model Y range has been sourced since it was introduced in 2022.

The Model Y Performance is also now available with a new Glacier Blue exterior finish and a Zen Grey interior, with paint now an extra-cost option, as has been the case for other Model Y grades sold here.

It’s the first model-year change since the ‘Juniper’ update arrived in local showrooms in 2025, with the six-seat Model Y L subsequently introduced in the Premium model grade in 2026.

Tesla hasn’t announced any price changes for other MY27 Model Ys, which start with the Model Y Premium Rear-Wheel Drive priced from $58,900 before on-road costs in Australia and NZ$67,900 before on-roads in New Zealand.

There are changes, however, with Tesla confirming the Model Y Premium Long Range All-Wheel Drive’s 0-100km/h time has dropped from 4.8 seconds to 4.3 seconds. Similarly, the Model Y L Premium has also taken 0.5 seconds off its 0-100km/h sprint, now down to 4.5 seconds.

Tesla Australia hasn’t confirmed how the better figures have been achieved. However, changes to the China-market Model Y L earlier this month included a new, more powerful ‘TL2’ front electric motor.

The changes also gave the Model Y L an increase in range from 751km on the CLTC cycle to 776km, with the current Australian claim at 681km on the WLTP cycle.

Tesla Australia also confirmed Powershare will be available on both the MY26 Model Y and MY27 Model 3, and cannot be retrofitted to existing vehicles.

Powershare allows compatible vehicles to provide power to external electrical devices through a separately purchased Tesla Outlet Adapter.

The Tesla Australia website currently lists the adapter at $145.

The Model Y is currently the third-most popular vehicle in Australia year-to-date, with the cheaper Performance variant coming the same week as another interest rate rise and amid record electric vehicle (EV) sales in Australia.

The Electric Vehicle Council told CarExpert earlier this week it was suggesting a link between booming EV sales and higher interest rates, admittedly among other factors impacting sales.

After a slow 2025, Tesla has recovered in 2026 with new models, as well as a longer new-car warranty.

Recently, insurance company Zurich said it would charge Tesla owners whose vehicles are using Full Self-Driving (Supervised) software a lower premium to insure their Tesla.

MORE: Explore the Tesla Model Y showroom