Your questions answered: Will Tesla survive? - carsales.com.au (2024)

There’s trepidation creeping into Australia’s new vehicle market, as carsales readers hint at this week.

From one would-be Tesla owner concerned about the negative sentiment surrounding the US electric car brand, to another reader keen to get some luxury SUV value, it seems sniffing out a deal is a top priority as the end of financial year approaches.

Plus, we’ve got someone about to make the EV leap who was formerly heading towards Tesla but is now adding a BYD to their list of prospects.

Finally, we’ve got another reader musing about the best way to get solar electricity to EVs that can’t be parked in a garage.

Question:

I was looking at buying the new Tesla Model 3 but am worried about everything I’m reading about Tesla. Will the company survive? It sounds like things aren’t going too well. And is Tesla likely to slash more off the price of the Model 3? – Dave

Answer: Tesla is going through another tough time (yes, there have been a few others before) and most of it can be traced back to increased competition.

Mainstream car-makers have generally been slow to react to the electric revolution and have mostly delivered EVs that have been good but not great.

But now Tesla is seeing first-hand how tough the car business can be.

That said, the Model 3 and Model Y are still among the best EVs on the market and still dominate in terms of sales (in 2023 the Model Y was the top-selling car in the world).

And given the brand recognition, manufacturing footprint and knack for innovation, it’s difficult to see Tesla failing in the medium term.

While the brand is producing relevant and appealing EVs it should have a viable business case and customer.

As for if the Model 3 will get any cheaper, that’s anyone’s guess. No one saw the recent bout of price competition coming. But there’s obviously a floor on how low they’ll go because the goal is still to make money.

At the end of the day, though, predicting anything to do with Tesla always requires some educated guesswork. The company likes to do things differently, and often it seems decisions are made on the fly.

Time to dust off the crystal ball!

Question:

I’ve been considering getting a Tesla Model Y and was ready to sign up to take advantage of the FBT exemption but then I noticed the deals BYD is currently doing on the Atto 3. I’m not wedded to Tesla and like the look of the BYD. More than anything, I like that it’s about 20 grand cheaper. Which should I buy? – Matt

Answer: If you’re looking for the best car then the Tesla Model Y wins. It has more space, better performance, better tech and better dynamics.

And that’s before you take into account the unmatched Tesla charging network.

But $20,000 is a big difference in how much you need to outlay. At that money, the BYD Atto 3 represents a step-up on its already terrific value.

So while we’d stretch to the Tesla if your budget permits, we’d be more than happy with the Atto 3 as an affordable EV that does a lot right.

Question: Which is the better buy: a new Subaru Crosstrek or Mazda CX-30? – Fab

Answer: It really depends how you plan to use them. If you’re doing any sort of off-road work then the Subaru Crosstrek is a clear winner.

The Crosstrek has some decent rough-road engineering cred and is only available in all-wheel drive. So for adventuring or going beyond the bitumen it’s a surprisingly capable device.

The Mazda CX-30 is very much an on-roader and you have to option the all-wheel drive system.

That said, the CX-30’s more suburban focus makes it a better bet in the suburbs. In particular, it has a more vivacious engine as well as crisp cornering manners and a classier cabin.

Question:

We have been long-standing BMW X1 owners – having bought the last three X1 series. Our current X1 is the top-of-the-line BMW F48 X Series SAV – X1 xDrive25i – 2016 model. Whilst it is still very low kms, we are at the point where we would like to replace it.

If we were to look at an alternative to the current equivalent X1, what would you recommend? We want to stay in the small luxury SUV car range (there is only the two of us) but, importantly, with the same luxury and quality, overall finish, all the extras, top performance (acceleration and torque) and preferably no bigger than the X1 (or at least not much bigger).

We also do not want to pay any more than the price of the already expensive X1 (hence the reason we are considering alternatives).

I should say we are not ready yet to move to full-electric, but in addition to an alternative petrol option, if there was a standout and compelling hybrid with what we want in and from the car, we would certainly consider that. – Stephen

Answer: The natural competitor to the BMW X1 is the Audi Q3. The 40 TFSI quattro is a good middle ground, bringing all-wheel drive and a peppy turbocharged engine. But like the X1 it’s not cheap, although you may be able to crunch a deal these days.

For a hybrid you could check out the Lexus UX 300h. It’s not as slick to drive as the BMW but has a nicely presented interior and frugal hybrid drivetrain.

If you don’t need much back seat space then also check out the new LBX while you’re in the Lexus showroom. It’s fairly compact but beautifully put together and is a bit of fun in hybrid guise. Plus, it’s reasonably sharply priced.

There are other alternatives, including the Mercedes-Benz GLA and Alfa Romeo Tonale, but neither is as compelling as the ones listed above.

And, of course, you should keep the X1 on your shortlist, as well as the BWM X2 that has a sleeker exterior design but the same underpinnings as the X1. Each comes with that premium price tag but also presents well.

Shame you’re not ready to go electric because the new BMW iX2 (the EV version of the X2) is terrific value right now. BMW Australia crunched a deal with head office to slide it in under the luxury car tax threshold so it could take advantage of the fringe benefits tax exemption on EVs.

That makes the iX2 cheaper here than anywhere else in the world. It’s a good fun car, too.

Question:

My mum is 76 years old and is currently driving a Hyundai iX35. She needs to get new car. She drives from Perth to Busselton semi-regularly. And she needs to drive her husband around who needs SUV height. What would you recommend? – Kelly

Answer: Stepping up to the next size of SUV would not only give your mum’s husband more space while retaining the SUV height but also bring more comfort.

The Kia Sportage – recently named carsales’ Best Mid-Size SUV for 2024 – is a good place to start. There’s a diesel engine available, which is a rarity these days in the medium SUV category. It’d be a good choice for those country cruises.

Otherwise look at the Nissan X-TRAIL, which like the Sportage comes with the option of a hybrid system. And now that Toyota is freeing up more supply of the RAV4 Hybrid, it’s also a car worth sticking on the shortlist.

Question: Today on radio they were talking about solar panels on nature strips and the council backed off. Residents don’t own the nature strip so I reckon they should have solar panels on their properties.

I do believe that people should be able to feed power to their cars via the footpath/nature strip. Whilst I applaud people doing this with cable protection ramps, I don't like this approach.

What will work is a long rubber strip butting up to the cable feed module (no ramp) with a long tapered ramp. Clark Rubber sells a 9mm x 1200mm rubber strip with 10 metres costing $1550. Much cheaper than other solutions. – John

Answer: I tend to think councils will want more than a Clark Rubber strip to facilitate more renewables and EV charging.

The transition to cleaner electricity is obviously a long process and one that will involve different solutions depending on where you live.

But it’s imperative that it’s done properly from the start – and that governments consider the long-term implications of any regulations.

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