Tesla Model 3 review: the smarter Tesla to buy?

How the Model 3 fits in 2026

The Model 3 is the car that built modern Tesla — and in 2026 it remains, by reviewer consensus, the better drive than its more popular sibling. The 2024 “Highland” refresh sharpened the cabin, improved the suspension and added genuine refinement. Tesla’s 2025 price cuts and the Long Range RWD’s 750 km WLTP claim (briefly Australia’s longest-range EV) have repositioned it as a serious mainstream sedan option, not just an EV halo.

Its rivals look very different from a few years ago. The BYD Seal undercuts on price; the Hyundai Ioniq 6 fights it on aerodynamic efficiency; the Polestar 2 trades on Scandinavian design. The Model 3’s case rests on a combination very hard to beat at the price: efficiency, charging network, dynamics, and driver-assist tech.

We’ve focused on the Rear-Wheel Drive ($61,990 list, around $66,000 drive-away in most states) — the entry trim, but more importantly the one CarExpert and several other Australian reviewers single out as “the one to pick.” For the full lineup including Long Range and Performance variants, see the Tesla Model 3 model page.

What’s good

It out-drives the Model Y. Reviewers consistently note that the sedan’s lower centre of gravity, lower kerb weight and lower-set seats deliver a more engaging, responsive drive than the SUV — particularly on B-roads. CarExpert specifically called the suspension tune “much better suited to Melbourne’s poorly-surfaced inner-city roads.” If you want the best-driving Tesla, this is it.

The efficiency figures are genuinely class-leading. CarExpert observed 12.98 kWh/100 km over 300 km of mixed driving — significantly ahead of the Model Y’s 15.3 kWh/100 km and ahead of almost every direct rival. The 60 kWh LFP battery delivers 513 km WLTP, and the real-world figures suggest that’s a defensible number.

Standard equipment is strong. Even the base RWD includes adaptive cruise, lane centring, the full Supercharger network, parking sensors, dual-zone climate and the bigger central touchscreen. There’s very little you’d want to add — the Model 3 is genuinely a complete car at the from-price.

What’s not

Touchscreen gear selection. Tesla replaced the column stalk on the Highland refresh with a swipe-up-for-Drive, swipe-down-for-Reverse touchscreen gesture. Every Australian reviewer has called this out as a step backwards — particularly when parking or doing three-point turns. There’s a physical override on the centre tunnel but it’s poorly placed.

Rear-seat space is tight. The sloping roofline means anyone over about 180 cm sits with their head touching the headlining, and the higher floor (battery underneath) pushes knees up uncomfortably for long trips. Acceptable for two, awkward for three adults in the back.

Warranty is the same weak point as the Y. Four years on the vehicle, eight on the battery. Kia’s seven-year warranty on the EV6 looks generous next to this. For a $62k purchase, three years’ difference matters.

Where it lands among rivals

• Tesla Model 3 vs BYD Seal. The Seal undercuts by $15,000 ($46,990 from-price), has a longer warranty and arguably better rear-seat comfort. The Model 3 wins on efficiency, dynamics and charging network. CarExpert’s review of the Seal Dynamic frames it as the credible value alternative — but acknowledges the Tesla is the more polished product.

• Tesla Model 3 vs Polestar 2. Polestar’s 2 is the design pick — better-looking inside and out, with Volvo-flavoured build quality. The Tesla is sharper to drive and significantly more efficient. Polestar’s resale and charging network are weaker.

• Tesla Model 3 vs Hyundai Ioniq 6. The Ioniq 6 is the aero champion (better WLTP, faster charging via 800V architecture) and has a longer warranty. Trails on cabin tech and Supercharger access.

Who should buy one

• Anyone choosing between Model 3 and Model Y who doesn’t need SUV practicality — the 3 is the better drive
• Daily commuters and Uber/rideshare drivers — efficiency directly translates to lower running costs
• Long-distance drivers — Supercharger access + 513 km WLTP makes road trips genuinely easy
• Tech-comfortable buyers who appreciate over-the-air feature updates

Who should pass

• Anyone regularly carrying three adults in the back — try the Polestar 2 or the BYD Seal instead
• Buyers who want a head-up display and physical controls — try the Hyundai Ioniq 6
• Long-warranty buyers — Kia EV6 (7 years) is a more defensible long-haul purchase

What I’d want for next year

Bring back a column-mounted gear selector — or at minimum a more prominent override button on the centre console. Extend warranty to six years to match the Chinese players. The Model 3 is so close to a “highest score” car that fixing those two would push it over the line.

Verdict

The Model 3 is the smarter Tesla to buy in 2026. Better dynamics, better efficiency, $10k cheaper than a Model Y, and reviewer consensus is genuinely strong. The base RWD is the right pick — it’s the volume seller, the most efficient, and the most dynamic. Only the warranty and the touchscreen-gear-selection stop it short of a higher rating.