Tesla Model 3 wins Best Urban Electric Vehicle Under $100K

Yesterday at 06:50 PM

Electric vehicle sales may have lifted off the accelerator pedal in the past nine months, but the number of new models reaching the market has hit overdrive.

That's especially true in the Best Urban Electric Vehicle Under $100K category of the Drive Car of the Year awards, which for 2025 fields an incredible 15 contenders – only one of which can emerge supreme.

Cars in this category should be compact enough for urban driving, but quote driving range and recharging speeds capable of spreading their wings beyond city limits, with the price band –  $50,000 to $100,000 – requiring a healthy dose of style, technology, luxury and performance.

Other categories at Drive Car of the Year look for the most family-friendly, most luxurious or most affordable EVs on the market, but this one aims to find the best all-rounders.

The Tesla Model 3 returns for 2025, having won the inaugural running of this category in 2024.

There have been no major changes to the vehicle since its major facelift in 2023 – which brought updated styling, improved technology, a longer range and a more supple ride – though a Performance variant has been added, and prices have been slashed.

It faces off against two other electric vehicles with sedan-like shapes, but a more practical hatchback tailgate: the Polestar 4, which hopes to attract buyers with its novel lack of a rear window, and the BMW i4 eDrive 35, a new entry grade promising a luxury experience at a shaper price.

But the winner proves the king of this segment has a while left to live.

MORE: See the finalists for Best Urban Electric Vehicle Under $100,000
MORE: See all the winners – visit the Drive Car of the Year 2025 hub

Winner: Tesla Model 3

Drive’s pick: Tesla Model 3 Long Range from $64,900 before on-road costs

For the second year running, the Tesla Model 3 proved impossible to beat as the Drive Car of the Year Best Urban Electric Vehicle Under $100K.

The Model 3 is not the newest car in the EV market – it went on sale in the US in 2017, and here in 2019 – but a substantial update in 2023 means it remains at the top of the tree, led by slipperier styling that has boosted driving range.

The interior is as minimalist as it's ever been, with a 15.4-inch touchscreen in the centre of the dashboard – enlarged and brightened with the late 2023 update – that's as intuitive and snappy as any smartphone or tablet.

Some buyers will lament the lack of Apple CarPlay and Android Auto integration for apps such as Waze, but Tesla's in-house software puts other car brands to shame, with built-in navigation, Apple Music and Spotify streaming, and video playback to make up for it.

Over-the-air updates mean the software gets better over time, there's an 8.0-inch rear screen to keep kids entertained.

Judges felt Tesla has taken minimalism too far in some areas. There is no dedicated instrument or head-up display, the air conditioning controls run through the screen, the indicators are now fiddly buttons on the steering wheel, and the gear shifter has moved to a slider on the side of the touchscreen.

To its credit, Tesla has improved the functionality of the gear selector over the past 18 months, adding software that partially automates gear changes when leaving a parking space, or during three-point turns. The longer you live with the car, the less the Model 3's quirks take away from its excellence elsewhere.

Elsewhere, the cabin is well finished with premium-feeling leather-like or felt materials, comfortable front seats with power adjustment, heating and ventilation, and plenty of storage for small items.

There's plenty of space for passengers in the rear, even taller occupants, while the combination of a large boot with under-floor storage roomy enough for carry-on bags, and an under-bonnet 'frunk' make for a practical daily driver or weekend road-tripper.

The equipment list is long, with leather-look seat upholstery, heated steering wheel, dual wireless phone chargers, dual-zone climate control, adaptive LED headlights, an expansive glass roof, and power boot lid.

A full suite of advanced safety systems is fitted, including blind-spot monitoring, traffic sign recognition, and Tesla's 'Autopilot' and 'Autosteer' adaptive cruise control and lane centring technologies.

Price cuts throughout 2024 have dropped the entry point into new Model 3 – and Tesla – ownership to $54,900 plus on-road costs, though it's this Long Range grade priced from $64,900 plus on-roads that is our value choice if you have $100,000 to spend.

The $10,000 premium buys an electric motor on the front axle for all-wheel drive and a 0-100km/h time of 4.4 seconds, plus a larger 79kWh battery good for a 629km claimed driving range, and an excellent 17-speaker sound system.

MORE: Tesla Model 3 pricing and specifications

The Model 3's last substantial update brought a significantly more comfortable ride over bumps, without ruining its traditionally-sharp handling delivered by ultra-quick steering, low weight by electric-car standards, and impressively-tuned traction control software.

Energy efficiency remains a Tesla trump card – just 13.2kWh/100km in the Rear-Wheel Drive, or 14kWh/100km in the Long Range, according to lab tests – and it gets full access to Tesla's widespread and reliable Supercharger network.

Maintenance is "condition-based" – aside from routine checks like tyre rotation and cabin filter replacements, servicing is only needed the car's computers decide they need it – but the four-year/80,000km warranty is shorter than the industry average of five years.

Despite one of the broadest fields in this year's Drive Car of the Year awards, the Tesla Model 3 is so far ahead of its rivals on value, space, performance, comfort, technology, efficiency and charging that the vote in this category was not a difficult one.

The competition will need to seriously up its game if it wants to claim the crown from the Model 3.

FIND YOUR NEXT CAR: Search Teslas for sale

The post Tesla Model 3 wins Best Urban Electric Vehicle Under $100K appeared first on Drive.