In wake of Model Y Juniper’s release, we talk to Thom Drew about all those challenges and the competition.

WITH patent slowdown in consumer desire for electric vehicles, and the myriad of controversies surrounding the company, how does the future look for Tesla in New Zealand?

Country manager for NZ and Australia Thom Drew (pictured) has sole regional authority to speak about such matters.

Intention of being with fellow Australasian executives who hosted media at the June 9 first drive event for Model Y Juniper couldn’t be fulfilled, but he instead was happy to undertake a remote interview from his Sydney office.

Among insights from that discussion; that Tesla is undaunted if just Model Y alone shoulders sales expectations - and that Turners no longer seems to be the accredited reseller of this brand.

What else? Tacit acknowledgement this is a remarkable time for Tesla, its majority shareholder and chief executive and its faithful.

Though it is showing signs of being patched up to small degree, Elon Musk’s 'major beef' with US president Donald Trump has been jaw dropping and a shock to the market and putting major fear for Tesla investors. Just prior to the NZ media show, Tesla lost more than $US150 billion in value … on one day. Musk himself personally lost almost $US20 billion.

Musk’s severe right wing politics appear to have been a final straw in Europe; Tesla sales there have plummeted and a group of owners in France are suing the company — alleging that its vehicles have become "far-right totems" that are harming their reputations.

Our region is not immune to concerns. Perhaps one of the commitments that kept Drew at Sydney regional HQ was need to prep for a class-action lawsuit brewing in Australia.

Thousands of Australian owners are suing; primarily over widely reported phantom braking issues but also Tesla's failure to deliver true self-driving capability and allegedly overstating its cars' range figures. The case began moving through Australia's Federal Court last month and claims Tesla misled owners about what they were buying.

MotoringNZ: The first Model Y shipment is here and is said to comprise 700 vehicles; in the heady days, all these would have been pre-allocated: Is this the case with the updated car?

Thom Drew: This shipment is a mix of customer and inventory vehicles that we are actively selling through.

MN: Model Y facelift faces rival product that didn’t exist when the original car came out; does that affect sales forecasts and pricing strategy this time around?

Drew: The market is getting more crowded, however our target has always remained ICE vehicles over EVs as this is where the biggest opportunity lies. Our pricing is in a great spot and reflects the advanced technology and safety features in our vehicles.

MN: What makes Model Y better than its rivals?

Drew: Our design team have taken the world’s best selling car and made it even better.

They have gone to great lengths to make new Model Y one of the most efficient, comfortable and practical family SUVs on the market.

The enhanced exterior styling, refined interior and increased range make it a stand out product in a crowded market.

MN: Reception for Model Y update in some overseas markets seems a little muted; why is that and if you believe it will be different in NZ, why?

Drew: Within our local market, new Model Y is off to a great start.

Australia’s deliveries began in May and quickly become the second best selling passenger vehicle in the country.

While NZ is of course a unique market, we’re also seeing a very positive reception.

MN: The NZ EV market went into freefall in 2024. Tesla achieved 1287 registrations last year; the majority - 826 - being for the Model Y, which remained the country’s best selling EV. But those stats also show a 74 percent year-on-year drop from 2023, when 4906 Model Ys and Model 3s were plated.

Do you perceive the NZ performance in 2025 being any better? Tesla has invested heavily in NZ; when it arrived, the EV market was positively-charged - now Government sentiment has changed and so has the public mood. How confident is Tesla about NZ now?

Drew: NZ continues to be an important market for us, where our in-house operations include sales, service, customer support, parts and warehousing, body repair, supercharging and energy.

While the overall auto-market remains challenging, we’re seeing signals of economic recovery which should provide near term upside for the industry.

MN: Model 3 facelift has not achieved anything like the volumes the original Model 3 achieved; does this suggest Model 3 is now a niche product and how important is it to Tesla NZ now?

NZ preference for crossover and SUV cars - regardless of powertrain type - is strong; would Tesla NZ consider a sales strategy that purely represents with Model Y?

Drew: NZ preferences are following the global trend to favour SUVs, however we’re not considering any changes to our lineup as Model 3 remains our most affordable offering in NZ.

MN: If Model Y update doesn’t take on, what other cars can Tesla bring to this market?

Drew: Model 3 and Model Y remain our core focus for NZ at this time.

MN: Are you confident Tesla can continue its current momentum once the initial rush of Model Y pre-orders passes, given a general slowdown in interest for electric vehicles?

Drew: New Model Y has a significant amount of improvements that need to be experienced in person, therefore we’ll be doing all we can to get people behind the wheel to see for themselves.

MN: One big challenge with EV in NZ is the poor residual value; NZ-new EVs depreciate more rapidly, and more significantly, than comparable age/quality/priced ICE product.

On top of this, there is strong anecdotal evidence that some resellers are not confident about taking Tesla product.

Tesla owners looking to trade seem to be often disappointed by the valuations given by your official reseller, Turners, and so tend to seek to sell their cars privately (via TradeMe). Is this all just a reflection of the NZ market state; are used EVs - in particular used Teslas - being undervalued in NZ? If so, what is the solution?

Drew: The used market is indeed challenging, especially considering the influx of used imported vehicles.

The increased supply of other EVs also puts downward pressure on RVs (residual values).

The Clean Car Discount removal led to a decrease in new car demand, subsequently affecting used demand and values.

On Turners, they are not officially partnered with Tesla, and their pricing is independent of Tesla's data.

Selling a car privately on TradeMe typically yields higher prices than trading in through dealerships. Our solution is to create greater awareness of our trade in programme, it’s convenience and the value proposition of any promotional incentives we are running.
MN: So much controversy surrounds the Tesla brand; Elon Musk’s activities and associations make him a highly controversial figure. Is this damaging the Tesla brand in NZ?

Drew: We’re remaining focussed on our products and educating the public on how EVs can fit their lifestyle today.

MN: There are all sorts of rumours about a small cost-effective Tesla car; Elon Musk says its not coming - why do you know and would such a car be useful in NZ?

Drew: Our exec team have talked about a lower cost vehicle on our earnings calls. If it becomes available, we will look at it’s suitability for the local market.

MN: What chance of Cybertruck (above) coming in right hand drive? Reports indicate you are working hard on persuading manufacturing into re-engineering it for right hand drive. How’s that going?

Drew: We’ve certainly shared our market feedback. As previously shared, Cybertruck has been under review for RHD however there is no confirmation of release.

MN: Cybertruck is being labelled a ‘dud’ in North America; it’s now incentivised there - and media say it is selling at a loss - there are stockpiles and trade values are reportedly poor; why would it do any better here?

Drew: I’m unable to comment on media headlines from North America, however our local tour has been about garnering feedback from the market to gauge interest.

We’ve had an overwhelmingly positive response so far and expect it would find a strong following.

MN: You are on the record as saying you could see a place for a smaller Tesla ute closer in size to a Ford Ranger, the top selling one-tonne ute here? Have you relayed that ideal to manufacturing; is it a possibility?

Drew: I think the market would welcome a capable EV ute in this smaller category, however I’ll leave any insights on potential vehicle programmes to our product team.

MN: What place would robotaxi play in NZ?

Drew: It’s too early to comment as focus remains on launch in Austin (Texas).

MN: When, if ever, do you imagine a completely active Full Self Drive might be allowed in this market? Does the recent trial in Melbourne, where the car accomplished the city’s infamous hook turn (video below), suggest Tesla is pushing for FSD acceptance there - will that also lead to effort to have FSD enabled in NZ and, if so, what regulatory processes need to be met to allow that to happen?

Drew: We are absolutely planning to bring FSD-S to New Zealand and our team are actively working on this. Stay tuned.