The Tesla Model Y has officially been named the 2026 Drive Car of the Year, securing the prestigious overall award in Australia. The electric SUV was recognized for its significant advancements and impact on the local new car market, reinforcing its status as a leading vehicle for Australian consumers.
Model Y’s Continued Dominance in Australian Market
The Model Y has already established a strong presence in Australia, having been the best-selling electric vehicle (EV) in 2025. Its overall sales performance also placed it as the tenth best-selling vehicle across all powertrains for the year. The recent ‘Juniper’ update has further enhanced its appeal, introducing new ownership benefits and expanding its software capabilities.
Drive‘s Car of the Year award evaluates category winners to determine which vehicle most effectively advances the Australian automotive landscape. For 2026, judges highlighted the Tesla Model Y’s compelling package, including a five-year warranty and the option to subscribe to Full Self-Driving (Supervised) on a monthly basis.
Priced from AU$58,900 before on-road costs, the all-electric crossover SUV presents a significant value proposition when compared to similarly sized vehicles powered by petrol or hybrid engines. Furthermore, access to Tesla’s extensive Supercharger network across Australia simplifies the transition to electric vehicle ownership for new buyers.
Enhanced Ownership Experience with Subscription Services
Owners have the option to add Full Self-Driving (Supervised) for a monthly fee of AU$149. While this system requires continuous driver supervision, it significantly enhances the vehicle’s advanced driver-assistance features, aligning with Tesla’s strategic focus on software-driven improvements.
In their assessment, Drive stated, “The default choice for a reason. The Tesla Model Y makes the transition to electric both effortless and rewarding.”
The 2025 facelift of the Model Y also brought aesthetic improvements, including a distinctive rear light bar that enhances its modern road presence.
Benchmark for Practicality, Efficiency, and Technology
Drive lauded the Model Y for setting a benchmark in combining practicality, efficiency, and advanced technology at an accessible price point. The vehicle’s eligibility for federal Fringe Benefit Tax (FBT) exemptions through novated leasing further amplifies its appeal to a wider range of buyers.
For 2026, the Model Y’s superior combination of driving range, widespread charging infrastructure access, and advanced software capabilities proved decisive factors in its win. This award solidifies the Model Y’s position as a highly influential vehicle shaping Australia’s evolving new-car market.
A tweet from the official Drive account confirmed the win: “Congratulations to the Tesla Model Y, the 2026 Drive Car of the Year! 🏆 Well packaged, impressively equipped, and outstanding value for money, it proved impossible for the judges to overlook. #DriveCarOfTheYear #TeslaModelY”