Tesla Model 3 Sales Slump Amid Rising Competition – Daily Car News (2026-01-05)
I clocked a lot of holiday miles this year—early-morning coffee runs, a cheeky detour to the coast, and more than a few chats at public chargers. The pattern was hard to miss: fewer Tesla Model 3 queues than last summer, more newcomers with names you’d double‑take, and a surprising number of families asking dealers about plug‑in hybrids. Today’s stories line up neatly with that vibe—Australia’s EV market is reshuffling, Lamborghini’s getting clever behind the scenes, the UK’s about to be flooded with fresh metal, and two icons (Ferrari F40 and Corvette Stingray) pop back into the spotlight in very different ways.
Australia’s pivot: Tesla Model 3 takes a breather while value plays pile in
CarExpert says Tesla’s Australian sales slipped in 2025, led by a softer Model 3. That squares with what I’ve seen in Sydney and Brisbane: shoppers cross‑shopping harder, and rivals landing blows on range, price, and interior polish. BYD Seal, MG 4, Polestar 2, Hyundai Ioniq 6—the spec sheets are suddenly crowded with 400‑plus km ranges and quietly excellent ride tunes. Add shipping hiccups and aggressive drive‑away deals from China, and the Model 3’s “default choice” status starts to wobble.

Worth saying: it still drives brilliantly. Even last month, on a blustery run up the M1, a Dual Motor Model 3 I borrowed felt planted and frugal—strong regen, dead‑simple one‑pedal flow. But the newest stalk‑less controls remain a love/hate thing. I got used to swipe‑for‑indicators by day two, yet a few owners told me they still miss the physical stalk when the weather turns foul. Also, the ride on 19s can get a bit busy over coarse chip. Not a deal breaker—just shop smart and spec the wheels you can live with.
Tesla Model 3 versus the new wave: where it still wins
- Efficiency on the highway and predictable charging curves—it sips electrons like a monk.
- Over‑the‑air updates that actually change the car you own; I’ve woken up to better camera views and smoother driver‑assist.
- Resale remains strong, even if the gap’s narrowing.
Side tip: Try your daily commute in a test car if the dealer allows. Urban ride and lane‑keep behavior can feel very different at 7:45 a.m. than they do on a quiet demo route.
Cheapest PHEV undercuts BYD, at least for now
Also from CarExpert: a new “cheapest PHEV” deal has popped up and, for the moment, undercuts BYD. It won’t last forever, but it’s a tidy on‑ramp if you like EV commuting with a safety net for long weekends. I ran a PHEV as a family hauler for six months—school run on electrons, weekly shop on electrons, netball practice on electrons. The engine only woke up for out‑of‑town trips, and yes, it did sound a bit grumbly when it cut in at highway speeds. Liveable. Just make sure the EV portion covers your weekday loop and that you can actually charge at home.

Meanwhile, Mitsubishi’s new Australian boss inherits a tougher board. The Outlander PHEV still makes real‑world sense—decent EV range, roomy second row—but the game now is software polish, keen pricing, and speed. Families notice glitchy infotainment faster than they notice 0–100 times. And if you need a third row? In the Outlander PHEV it’s strictly kids‑only and short hops. Bring a tape measure and your most honest nine‑year‑old.

Deepal, pitched as a BYD rival, is inching closer to its Australian launch after delays. Expect long‑range claims, slick cabins, and specs designed to win literal carpark comparisons. If they nail ride and noise suppression on Aussie roads, the established players will feel it.
Quick table: What today’s Aussie shifts mean for buyers
| Topic | What’s new | Why it matters | My quick take |
|---|---|---|---|
| Tesla Model 3 | Sales slump noted in 2025 | Price/value pressure from Chinese and Korean rivals | Still great to drive; compare finance, tyres, and charging costs, not just RRP |
| Cheapest PHEV | Limited‑time deal under BYD’s price | Lower entry to plug‑in life | Ideal if EV range matches your week; confirm off‑street charging before signing |
| Mitsubishi Australia | New boss amid sliding sales | Speed and software now decide the fight | Outlander PHEV is solid; watch for updates and sharper drive‑away offers |
| Deepal (EV) | Delayed launch now nearing | Another value‑heavy contender | Strong spec per dollar is likely; reserve judgment until we see Aussie ride tuning |
Tesla Model 3 fleet math, in plain English
CarExpert also runs the numbers on Tesla’s fleet appeal. In my experience, it comes down to three things: low planned maintenance, fewer wear items thanks to regen, and energy use that doesn’t swing wildly with the weather. On a humid run up the Pacific Motorway, my long‑term Model 3 tester held consumption steady with the A/C cranking—fleet managers love that predictability.
- Plan around workplace charging; that’s the real TCO cheat code.
- Budget for tyres—instant torque makes light work of rubber.
- Ask about telematics integration before IT finds out the hard way.
Did you know? Heavy regen on the Tesla Model 3 means brake pads can last ages. I’ve seen cars with 60,000 km on original pads still looking healthy at a service check.
Technology: Lamborghini welcomes AI to Sant’Agata
Also via CarExpert: Lamborghini says AI is moving into the factory. Not a self‑driving Huracán, relax. This is about smarter process planning, cleaner carbon layups, quicker prototype loops, and fewer tiny defects that would otherwise give a trimmer a headache. For low‑volume exotics, every hour saved is money—and every micron of panel fit counts. The theatre won’t change; it’ll just be rehearsed more efficiently.
UK deluge: 159 new cars incoming
Autocar tallies 159 arrivals for the UK this year. That’s a lot of metal. Watch for:
- Electrification everywhere: more long‑range EVs and PHEVs that make 40–70 km feel like 100 thanks to smarter energy use.
- Software‑first cabins: OTA features, subscription add‑ons, and screens that live or die by latency.
- Big‑car comforts, smaller footprints: city life demands it.
Pro tip I swear by: book back‑to‑back tests on the same route. Ride quality, throttle tuning, and lane‑keep manners jump out when your muscle memory hasn’t reset. And bring your phone cable—some “wireless” systems are more aspirational than actual.
Culture and icons: F40 remixed, Stingray revisited
Carscoops unearthed a widebody Ferrari F40 concept that’ll have purists clutching pearls. I’m into it. The original is an unfiltered punk record; turning up the bass with modern aero is heresy on paper, strangely compelling in pixels. Meanwhile, the Corvette Stingray story—where a man linked to the original shape builds the version he always wanted—heads to auction. It’s like seeing a director’s cut decades later. If you’ve ever traced a C2’s fender line with your fingertips in a carpark (guilty), you understand the pull.

Road safety footnote: Don’t be that person
CarExpert also notes a New Year’s police chase in NSW involving a Kia Rio and a stack of bad decisions. Not clever, not cool. Even a humble hatch can be deadly in the wrong hands. If you’re not right to drive, don’t.
Buyer cheat sheet: what to do this week
- PHEV‑curious in Australia? Stack that limited‑time deal against your shortlist and map your commute. If your EV range covers the week, you’ll barely touch fuel.
- Fleet shoppers: let total cost of ownership do the talking—tyres, insurance, charging access, the lot. Brand loyalty doesn’t pay the invoices.
- UK readers: with 159 cars inbound, narrow by use case first (school run, motorway, towing) and test two or three rivals properly.
Conclusion
The centre of gravity is shifting. The Tesla Model 3 is discovering what pioneers always do: the second wave hits hard and fast. Legacy brands are retooling (some with AI literally in the weave of their carbon fibre), while fresh names arrive swinging with value and polish. For the rest of us, the job remains gloriously simple—be honest about how you live, then drive the contenders. The car that fits your street wins, headlines be damned.
FAQ
- What’s the cheapest PHEV in Australia right now? CarExpert points to a limited‑time offer undercutting BYD. It’s time‑sensitive—check local dealers and compare drive‑away pricing and servicing.
- Why are Tesla’s Australian sales soft? Stronger rivals, sharper pricing elsewhere, and supply swings. The Tesla Model 3 is still great to drive, but buyers have more credible options than ever.
- Does Lamborghini’s AI push mean autonomous supercars? No—this is about manufacturing smarts and quality control, not hands‑free V12s.
- Who revisited the Corvette Stingray design? The designer linked to the original Stingray shape built the version he always wanted, now headed to auction, as covered by Carscoops.
- Should I buy a PHEV or a full EV? If you’ve got reliable home/work charging and predictable routes, a full EV is beautifully simple. If your life includes surprise long trips with iffy charging, a PHEV can be the sweet spot—just ensure the EV range covers most weekdays.
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