Tesla introduces fresh incentives for Model Y purchases to maintain sales momentum in the upcoming quarter
In a bid to maintain its dominance in the Australian electric vehicle (EV) market, Tesla has announced extended incentives aimed at boosting sales. These incentives include trade-in bonuses and software transfer offers, providing significant financial benefits to buyers.
The refreshed Tesla Model Y, which has received critical acclaim and is considered the best electric SUV on the market, is at the heart of this strategy. The previous generation 2025 Tesla Model Y Performance variants are priced around $81,000 driveaway, making it an attractive option for many.
Tesla's trade-in bonus offers a discount of $2,000 for buyers of a new or demonstrator Model Y when trading in a used car. This offer, valid until September 30, 2025, can be applied to the purchase price of the new or demonstrator Model Y, as long as delivery occurs before the end of the quarter. It's important to note that this offer cannot be redeemed as cash.
In addition, Tesla has extended the option for existing Tesla owners with enhanced autopilot (EAP) or full-self-driving (FSD) software to transfer this software to a new or demonstrator Tesla vehicle, if delivery occurs by September 30, 2025. This transfer avoids the need to repurchase the software, amounting to savings of approximately $5,100 for EAP and up to $10,100 for FSD.
These extended offers have been well-received, helping Tesla maintain its position as the best-selling EV brand in Australia. The sales momentum was particularly strong in June 2025, when Tesla sold more than 4,500 EVs, its highest monthly sales so far that year, largely due to the refreshed Model Y deliveries and previous trade-in bonuses on Model 3 stock.
Tesla delivered 384,122 EVs globally in Q2, with Model 3 and Y making up 373,728 of them. In Australia, the trade-in offer is limited to one vehicle per order and cannot be redeemed as cash.
With increased competition, the latest round of extended incentives is likely to drive sales in the next three months. Tesla has plenty of excess stock in many key markets due to higher production in Q2. As of writing, Tesla has multiple new Tesla Model Y and Model 3 vehicles in stock, including certain variants of the previous generation Model Ys.
In 2025, Tesla Model 3 sedan sales started slowly but picked up in June, reaching 1,132 sales, its best month so far this year. The Model 3 sedan regained a spot on the top 3 sales podium in June, along with the refreshed Model Y.
Industry expert Riz Akhtar, founder of carloop and a mechanical engineer with 7 years of experience building transport infrastructure, has praised these extended offers. He drives a red Tesla Model 3 and believes that they have contributed positively to Tesla's sales performance amidst growing market competition.
These incentives offer a compelling reason for potential buyers to consider Tesla's offerings. With the refreshed Model Y available from over $69,000 driveaway in Victoria and the previous generation 2025 Tesla Model Y Long Range priced from $68,433 driveaway, there are attractive options for those looking to make the switch to electric vehicles.
Technology and lifestyle convergence is evident in Tesla's strategy to boost sales, particularly in the Australian electric-vehicle market. The trade-in bonus, offering a $2,000 discount on the purchase of the refreshed Tesla Model Y, is one such technology-driven lifestyle incentive that encourages car owners to switch to electric vehicles like the Model Y. This offer, valid until September 30, 2025, can be combined with software transfer options for existing Tesla owners, resulting in significant financial benefits.
