James Ward recently tested Tesla’s self-driving technology on a trip from Sydney to Melbourne and was blown away by the experience. (Source: Supplied)
Tesla could soon find itself firmly at the top of Australian buyers’ minds thanks to its autonomous driving technology. The Full Self Driving (supervised) feature has been trialled across Aussie roads recently, and it’s expected to roll out very soon.
While Elon Musk’s car manufacturer has two of the most popular electric vehicles (EVs) in the market, it has faced increasing pressure from big-name brands like Kia and MG and Chinese-made rivals like BYD. But car expert James Ward told Yahoo Finance that this market-leading technology could see Tesla push away from its competitors.
“I think it will put Tesla back into consideration,” he said.
“I dare say this will see people move back to the brand, because this is a unique selling point, if ever there was one, no one else can give you this.”
The Drive.com.au director of content tested Tesla’s self-driving tech on a trip from Sydney to Melbourne this week and said it was an impressive experience.
“It stopped at a pedestrian crossing to let a couple cross it, it looks for the gap in the traffic, it’s not aggressive or assertive, but it does everything that it’s supposed to do,” he said.
“It’s a very polite driver, and arguably makes the roads a far more pleasant and polite place to be.”
Do you have a story? Email stew.perrie@yahooinc.com
That’s unclear right now, but Ward predicted there would likely be an upfront cost of around $10,000 and a monthly subscription fee of $100.
Tesla’s website claims the Basic and Enhanced Autopilot features cost $99 per month, but the company hasn’t yet revealed what Australian users could pay. Yahoo Finance has reached out to Tesla for comment on its pricing.
The car expert felt that structure could see some of the more price-conscious drivers steer clear, but said it’s a decent-enough gimmick that could attract the masses.
“It will appeal to a lot of people who love tech and who want the latest and greatest, like the same people who queue up for the brand new iPhone and all that kind of thing,” he told Yahoo Finance.
The self-driving technology is purely software, and can be uploaded only in the latest models once you decide to pay for it, rather than having hardware installed in the vehicle.
Ward said Tesla could be looking into backwards compatibility for older models down the track, which would mean current Tesla owners wouldn’t have to fork out tens of thousands of dollars to get the newest model to access the fancy tech.
He added that when you engage the new feature, you have to press a button agreeing that even though the vehicle is doing the driving, you accept all responsibility for what the car does on the road.
It’s unclear at this stage whether that could see adopters pay more in insurance premiums.
A spokesperson for the Insurance Council told Yahoo Finance that a lot goes into pricing someone’s insurance policy.
“The cost of insuring any motor vehicle – whether it’s a petrol/diesel vehicle, an electric vehicle or includes any advanced technology – can vary due to a number of factors, such as the value of the asset being insured, the availability of parts and relevant characteristics of the driver holding the policy,” they said.
Ward suggested it could actually end up making premiums cheaper once the technology had been around for a few years and there was enough data showing they are better and safer drivers than humans.
Regaining that competitive edge could be crucial for the car manufacturer.
Some experts have suggested that customers have turned away from Tesla due to Musk’s involvement with the White House and his controversial moments this year.
Even though it was the number one and third-most bought EV in Australia in the first six months of 2025, Tesla is losing its foothold in the country.
The Tesla Model Y sold 10,431 units and 3,715 Model 3s between January and June, which is a 16.7 per cent and 65 per cent drop from last year’s figures.
The BYD Sealion 7 came in second with 3,756 units, with the Chinese manufacturer having four entries in the top 10 most purchased EVs.
In July, Tesla suffered a 12 per cent fall in quarterly revenue, which was its worst result in more than a decade, and equated to a roughly AUD$34.1 billion drop.
Mercedes-Benz and Volvo are also working on self-driving technology, but at the moment, Tesla is the only car manufacturer, EV or otherwise, that has the software ready to use.
Australia is also the first right-hand-drive market in the world to trial the feature, with places like the UK and Japan still lagging behind.
Tesla could increase its market share when it releases its self-driving technology across Australia. (Source: Getty)·ASSOCIATED PRESS
Ward was in a Tesla Model 3, which retails for just under $55,000 in Australia for the rear-wheel-drive option.
The more than 800 kilometre southward journey saw the Tesla cautiously navigate the busy streets of Sydney before taking on the open stretches of motorways, highways and freeways with ease.
But he added that sometimes it would drive slightly under the speed limit, which, on a more than nine-hour drive, might not be the best for those who want to get to their destination as quickly as possible.
The car made two stops along the way when its battery got low, which was all done without Ward having to touch a button.
Compared to other countries, Australia has very strict rules on what you can and cannot do in the driver’s seat of a car driving itself.
You have to act as if you are in control, meaning you can’t doze off or watch YouTube videos.
Ward said the Tesla’s cameras made sure your eyes were firmly on the road and the vehicle would start to beep and even threaten to turn itself off if you looked at anything that wasn’t straight ahead.
The alarms would even go off if you were wearing sunglasses because some lenses prevent the cameras from seeing where your eyes are.
“You’re expanding the same amount of energy as if you were driving, but you’re not driving,” he told Yahoo Finance.
“But it is remarkable. I went in a bit sceptical, and I’m not a big Tesla fan, and I have to say it is genuinely very, very impressive.”
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