The Tesla Model Y has been awarded the 2026 Drive Car of the Year, marking a first for the automaker in the prestigious Australian competition. The announcement, made Monday, recognizes the Model Y’s advancements in technology, value and practicality, according to Drive, the Australian automotive news and reviews website.
The Model Y, manufactured in Tesla’s Shanghai factory, secured the overall win after similarly claiming the “best electric vehicle under $60,000” category. It bested a field of category winners including the BMW 5-Series, BYD Atto 2 and Dolphin Essential, Hyundai Palisade, Kia Tasman, Volvo XC90, and Zeekr 7X. This is the second time an all-electric vehicle has received the top honor in the award’s 21-year history.
Drive content director James Ward stated the Car of the Year award is given to the vehicle that “moves the game forward the most for Australian new-car buyers.” Judges specifically highlighted the Model Y’s technology as a key differentiator.
Priced from AU$58,900 before on-road costs, the 2026 Model Y Premium Rear-Wheel Drive boasts a 60kWh battery offering a range of up to 466 kilometers. The vehicle’s accessibility is further enhanced by access to Tesla’s Supercharger network, which is now open to owners of non-Tesla electric vehicles across Australia.
The Model Y’s interior provides ample space, with 971 liters of cargo capacity in the boot and an additional 117 liters in the front. Features include generous headroom and a central media screen for rear-seat passenger entertainment. A recent “Juniper” update has improved the vehicle’s ride quality, and a backlit LED tail light bar adds a modern aesthetic.
A significant factor in the Model Y’s victory was the availability of Full Self-Driving (Supervised) as a monthly subscription for AU$149. While requiring driver oversight, the system expands the vehicle’s advanced driver-assistance capabilities, reflecting Tesla’s software-focused approach. Tesla also offers a five-year warranty on all vehicles, with an eight-year, 160,000-kilometer warranty on the battery and drive unit.
The Model Y was already Australia’s best-selling electric vehicle in 2025, and the 2026 model’s enhancements are expected to further solidify its position in the market.
