Tesla Stuns Market — No Price Hike for 2026!

Tesla Malaysia has reaffirmed its long-term commitment to the local market, announcing that it will maintain current vehicle prices across its entire line-up despite the conclusion of the electric vehicle tax holiday. 

Prices introduced in 2025 will remain unchanged, with the Model 3 continuing from RM169,000 and the Model Y from RM195,450, even as the wider industry braces for higher costs following the end of CBU incentives.

The announcement comes alongside continued investment in Malaysia’s charging ecosystem. Tesla currently operates 18 Supercharging stations and 17 Destination Charging locations nationwide, totalling 76 Superchargers and 79 Destination Chargers, with further expansion planned to support both long-distance travel and daily charging needs.

Tesla is also marking a milestone with its expansion into East Malaysia. Its first Experience Centre in the region has opened at Vivacity Megamall in Kuching, Sarawak, allowing customers to experience Tesla vehicles firsthand and explore its latest EV technology.

Besides this, exclusive Jan 2026 incentives are also being offered, with deliveries expected from Feb, alongside discounts and referral benefits. Tesla says the move reflects its confidence in Malaysia as a key market in its global mission to accelerate the transition to sustainable energy.

What makes the announcement striking is its timing. It comes just months after Tesla, like most other brands, pushed aggressively to deliver vehicles ahead of the CBU tax incentive expiry, resulting in record delivery volumes in late 2025 as buyers rushed to lock in tax-free pricing.

Against that backdrop, Tesla’s decision to hold retail prices without any stated commitment to local CKD production is unexpected. While many automakers rushed to announce or fast-track CKD plans to preserve tax advantages, Tesla has taken a markedly different approach.

One possibility is that price stability is being supported by surplus inventory secured ahead of the incentive deadline, allowing Tesla to hold pricing in the near term despite potentially higher landed costs going forward.

Having said that, we need to emphasise that without some form of continuation, much of the EV adoption momentum built in 2025 risks being undermined. CKD facilities take time to establish, and not all models have the volume to justify localisation, raising the prospect of reduced model availability and slower EV adoption.