There are plenty of things that you surrender when you buy a Tesla: engine noise, overpriced petrol and the respect of blokes in your local RSL. But now you can add a radio to the list.
Earlier this week, the Elon Musk-owned carmaker revealed that it would be removing the FM and digital DAB radio from its latest Model 3 RWD sedan.
It cut AM radios from its cars more than five years ago.
Drivers (and, presumably, by extension rideshare passengers) will be able to listen to radio streamed over the internet. However, should the car lose a mobile data signal, the radio will drop out.
Most importantly, it will prevent driers from accessing emergency alerts, such as during bushfires and other natural disasters, which are transmitted over radio. FM frequencies are also used for warnings of crashes or breakdowns ahead in tunnels.
“This week’s announcement from Tesla is the very reason the sector has called for urgent government action,” Lizzie Young, CEO of Commercial Radio & Audio, told B&T.
“We need the Government legislation to ensure all Australians can access their radio when and where they need it, whether for essential news, information or emergency broadcasting services.
“The radio prominence legislation for smart speakers, which the government recently committed to, is an important step but it is just that – the first step. It is urgent the Government puts similar protections in place for the car.
“We will continue to advocate for radio receivers to be mandated in cars too because in a vast geographic environment like Australia it is essential that both public and commercial radio services are accessible to all.”
CRA’s 2026 Infinite Dial research found that 77 per cent of Australians listen to AM, FM or DAB radio every week in Australia and that 82 per cent of Aussies listened to the radio in their cars every week. That compares with 52 per cent listening to streaming services and 40 per cent listening to podcasts. Just over a quarter continue to fly the flag for CDs in cars.
But Tesla is not alone in removing AM radios from cars to cut costs. Listenership is declining and it saves some money. But it is the first to remove FM and DAB radios.
Per Drive.com.au, a 2023 study found that removing AM radio would save automakers between AU$70 and $100 per vehicle due to to the shielding required to protect the receiver from interference produced by the electric motor.
The Model 3 RWD costs $45,900, $9,000 less than the Model 3 Premium which sees the FM and DAB radio return.
The cheaper Model 3 RWD’s front touchscreen keeps the built-in TuneIn app for radio streaming but it requires an internet connection.
It also requires owners to subscribe to Tesla’s Premium Connectivity pack, a snip at $13.99 per month following a free trial. This allows it to operate on a mobile data connection, rather than connect a WiFi hotspot to the car.
It is currently the cheapest electric sedan on sale in Australia.
