2025 Tesla Model Y RWD review

You could argue that – putting critical assessment aside – the Tesla Model Y was once a big fish in a small pond. Since this electric medium-sized SUV arrived on Australian shores in 2022, it has enjoyed a huge slice of market domination as the tide of electric car sales rose in Australia against a handful of competitors.

The market has since been inundated with electric SUVs from well-known brands and newcomers alike. Particularly, there is a glut of medium-sized SUVs with battery-electric power to choose from.

The pond is a lot bigger now, and it's teeming with fish nibbling for a slice of the market.

Now with a heavy update inside and out (known as 'Juniper'), does the 2025 Tesla Model Y have the technological firepower to take on the slew of competitors and continue to stand tall?

Now that the Launch Edition variants have come and gone, what we have for this review is the most affordable option in Tesla's regular Model Y line-up. RWD refers to rear-wheel drive, which indicates a single electric motor powering the rear wheels. No 'Long Range' nomenclature also points to a smaller battery, lower overall driving range, and a lower asking price.

With a price starting from $58,900 plus on-road costs, the 2025 Tesla Model Y does command something of a price premium over some other competitors in the segment.

The Geely EX5 is a cut-price anomaly in this segment, while other options like the XPeng G6, BYD Sealion 7, MG S5 and Deepal S07 offer more metal for the money. The Volkswagen ID.4, Kia EV5 and Skoda Enyaq are closer to the 2025 Model Y on price.

The range of competitors is only set to grow further as well, with things like the Nissan Ariya and MG IM6 arriving to the Australian market. More fish.

What you get for your money in this entry-level Tesla SUV is good, though, and makes it feel like a competitive offering in the segment. The front seats are heated and ventilated, rear outboard seats are heated, and a faux leather seat trim is used.

There are parking sensors front and rear, and multiple cameras are included as standard. You can count nine speakers on the inside of the base Model Y, which is upgraded in higher-grade models.

There are automatic LED headlights and tail-lights, 19-inch alloy wheels, a panoramic glass roof and auto wipers. There's a wireless phone charging pad and ambient lighting to jazz up the interior, a heated steering wheel and a powered tailgate.

The 15.4-inch central infotainment display is backed up by an 8.0-inch touchscreen in the second row, while drivers make do without any kind of instrument cluster or physical gear selector... the central screen handles those tasks.

If you're not only looking at brand-new models, have a look at the Teslas currently for sale on Drive Marketplace.

At nearly 4.8 metres long, the 2025 Tesla Model Y doesn't feel like it's short-changing you for overall size. It's around 40mm longer than the outgoing model, but Tesla engineers have done a bang-up job of getting the most out of the available space.

There is a textbook minimalist design – which Tesla is known for – writ large on the inside of the Model Y. There’s precious little adornment of detail to catch your eye, with only the steering wheel and central infotainment display being noticeable.

Even the air vents are hidden, with controls for the air direction being done through the infotainment display. In fact, just about everything runs through that screen, even the gear selector, which can be a bit confounding at times.

Tesla opted to keep an indicator stalk on this new Model Y, thankfully, and there are some smart shortcuts and design elements included to keep things as smooth as possible in terms of the human-machine interface.

Some will love the reductive design, where it’s clear a chainsaw was taken to any kind of button, knob or panel that could be replaced in the touchscreen. Others might find this experience a bit jarring. Updates for the new Model Y include a better and more impressive range of materials inside – along with some nice ambient lighting – which makes this car feel particularly quality and well put together.

Faux leather seats, with plentiful electric adjustment and heating and ventilation up front, are comfortable and feel quality enough for the asking price.

Storage is well managed, however, with two spots for a smartphone (including dual wireless chargers) below the infotainment display, and two impressively large and lidded central storage bins around where your elbow lands.

There are cupholders and a single USB-C power outlet that’s kind of hard to find the first time. 

The Model Y continues to impress in the second row, with plentiful leg room and head room that you would expect from a medium-sized SUV. Tesla seems to have done a stellar job with packaging up this electric vehicle, however, offering good space and comfort for occupants along with nice storage at both ends.

Second-row occupants are treated to a separate 8.0-inch touchscreen with good functionality and quality, as well as air vents and twin USB-C power outlets. Passengers can change the air flow and play games using the screen.

The second-row seats, which are comfortable, also have electric backrest adjustment for an added salubrious touch.

Along with a handy 116-litre front under-bonnet storage area, the Tesla Model Y has an impressively spacious and well laid out boot. There is 822 litres of overall storage – more than other SUVs regardless of their powertrain – and it has some handy storage bins on each side and a false floor that can open up to fit the largest of suitcases easily.

The 15.4-inch infotainment display inside the new Model Y is impressive in its performance and operating system, despite the fact that it's missing the common smartphone mirroring technology of Apple CarPlay or Android Auto.

What you can't criticise is the performance of the infotainment screen, which is bright, detailed and slick in its reaction and processing times.

The Google satellite navigation is excellent (which integrates driving range smartly), menus and options are easy to learn, and there is no shortage of fun tricks to dig through. Farting games, a crackling fire, karaoke... the list goes on.

It's all quite impressive and works well in terms of integration despite the lack of smartphone mirroring.

The Tesla Model Y is capable of over-the-air (OTA) updates for remote software renewals and changes, and the Model Y connects up with a smart companion app with loads of useful functionality.

While the previous Tesla Model Y garnered a five-star ANCAP safety score in 2022, such a rating has not been extended to this new 'Juniper' updated model. And while there is a lot of commonality between both models, there are some significant changes to the structure and platform of this new Model Y.

Therefore, while there is plenty of safety technology included in the Tesla Model Y, the 2025 model is currently unrated.

As you would expect from a brand like Tesla, there is plenty of technology around driving safety and convenience to dig into.

Standard fitment of what Tesla calls 'Basic Autopilot' has been augmented in our case to Enhanced Autopilot, for the non-insignificant sum of $5100. This includes more driver assistance on the highway, including autonomous lane-changing and overtaking. It works confidently and seamlessly, sitting on the road and not being fazed by changing conditions.

It's worth pointing out this doesn't come with any hardware changes for the vehicle, where the array of exterior cameras are used instead of radars or other sensors. Clicking this option simply wakes up the associated software. Australia does miss out on the 'Summon' function, where the vehicle is able to autonomously navigate an off-the-road carpark to meet the driver.

Those who want more than this can get what Tesla calls 'Full Self-Driving Capability', which has been limited in Australia due to regulations. Our version does get traffic light and stop sign control (stop-start functionality on adaptive cruise control, in other words), but the full-fat experience isn't currently available for use in Australia.

The 360-degree camera system works well for parking, and I didn't find any of the driving features to fall into the trap of annoying you into obsolescence.

Unlike most other vehicles in Australia, there is not a specific set of service intervals and costs on the Tesla Model Y to reference. This is because the vehicle uses a condition-based servicing schedule that will vary according to the kilometres driven, time elapsed and conditions encountered.

While servicing could be potentially inexpensive, insurance for the 2025 Model Y is relatively very expensive. Running the car's details through an online quote generator, we got an annual cost of $3274.38. This is a comparative quote for a 35-year-old male living in Chatswood, NSW. Insurance estimates may vary based on your location, driving history, and personal circumstances.

One big advantage of the Tesla Model Y, and perhaps a benefit of being solely focussed on EVs for such a relatively long time, is the amount of efficiency (and therefore a solid driving range) that can be extracted.

A claim of kWh per 100 kilometres is pretty good, but bettering it through regular driving habits in both town and highway conditions is impressive. We saw a figure that was around the 15kWh/100km range, and could likely do better than that if we were really chasing more efficiency.

The 62.5kWh battery isn't necessarily that big, but the impressive efficiency means a claimed range of 466km is achievable.

In terms of charging speed, the Model Y RWD (with lithium iron phosphate battery chemistry) tops out at 175kW on a DC fast charger.

Even though we don’t have the more powerful all-wheel-drive Model Y in this test with two electric motors, the most affordable rear-wheel-drive variant in the range doesn’t feel lacking for power whatsoever.

Tesla doesn’t quote a torque figure, which is a strange move. Judging from my seat-of-pants, it’s not low and provides brisk responsiveness off the line. And with 255kW of power, the Model Y outstrips most other electric SUVs with a single electric motor.

A relatively small battery pack – at 62.5kWh – means the Model Y is relatively light (for an electric SUV of this size) at 1921kg. This helps with straight-line performance, but also helps with the general ride and steering characteristics of the Model Y.

One thing that adds to the driving experience is the huge amount of visibility from the driver’s seat. The windscreen feels huge, there’s no instrument cluster vying for your attention, and the bonnet falls away out of view.

The steering wheel is relatively small, and the responsiveness of the steering ratio is also quite sharp.

The throttle and brakes are both sharply tuned as well, responding quickly to inputs from the driver. It can take a little bit of getting used to, especially if you’ve come from something more doughy feeling.

But once you’re dialled in, the driving experience of the Tesla is quite serene. The ride quality has been improved noticeably since the previous model, exhibiting a much less jittery and unsettled nature over minor bumps and rough roads.

This added compliance – without losing good levels of body control – matches well to a steering feel that provides a bit of mid-corner feedback. Roadholding capabilities feel good as well, without a heaving sense of mass that needs to be fought against.

Overall, the Model Y is hard to throw any major fault or criticism at from the driving point of view. It’s sharp but refined, balanced and quiet.

That 1588kg might sound like a strange figure for Tesla to land on for a braked towing capacity, but it's a conversion from the 3500lb capacity in the United States. It's not a big figure, and buyers should be wary of the negative impact that a trailer of this weight (especially one with a lot of wind resistance) will have on your remaining driving range.

If you don't have trailer brakes fitted, then you're restricted to 750kg.

The 2025 Tesla Model Y is much improved, and remains a benchmark of technology and efficiency in the hugely competitive mid-sized SUV market. The improvements in the driving experience, refinement and ride quality are key here, and make for an impressive overall package.

Buyers of an electric medium-sized SUV have their work cut out sorting through the huge range of options with various pros and cons. But rest assured, the new Tesla Model Y – feeling particularly sweet in the rear-wheel-drive variant – needs to be right at the pointy end of the consideration set.

Sam Purcell has been writing about cars, four-wheel driving and camping since 2013, and obsessed with anything that goes brum-brum longer than he can remember. Sam joined the team at CarAdvice/Drive as the off-road Editor in 2018, after cutting his teeth at Unsealed 4X4 and Pat Callinan’s 4X4 Adventures. Off-road writer of the Year, Winner - Sam Purcell

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