- Read all the Drive Car of the Year category reviews here

Tesla's Model S made history even before it was judged. Just being considered good enough to be a finalist in Drive's Car of the Year awards was a breakthrough for an electric car.

While fully electric cars have been on the market several years - the likes of the Mitsubishi i-MiEV and Nissan Leaf - none had made a compelling argument that they were good enough to be make our extensive testing program, for a variety of reasons.

But the Model S P85+ we tested answers all the question marks that hang over electric cars. It has a range of more than 450km between charges and although it isn't cheap at $127,800, it is competitively priced against its traditionally-powered rivals.

Of course there were still questions that had to be answered and the Model S was up against a tough field in 2014.

The defending champion in the class also blends luxury and economy, the Mercedes-Benz E300 Bluetec Hybrid while the new Mercedes-Benz S-Class, in S400L guise, represents the top of the luxury tree. The fourth finalist, the BMW 435i Gran Coupe, represents a major step forward for the growing fleet of niche models.

Drive's Best Luxury Car over $80,000 finalists. Photo: Mark Bean

The E300 won this category last year with its blend of comfort, performance and efficiency. The turbo diesel-electric hybrid powertrain uses just 4.3-litres per 100km (less than most city cars) but still provides strong performance for the large luxury sedan.

But some judges weren't impressed by the grumbly diesel soundtrack at low speeds and the clunky way the stop-start system operated.

The E300 came in for criticism from the judges for its conservative interior, which is a generation behind its A-, C- and S-Class siblings, and doesn't fit its $100,000+ price.

It is also showing its age on the road with judges feeling it lacked the kind of poise offered by its smaller C-Class sibling on both the road and in the dynamic testing.

The E300's big brother, the S400L, won the judges' praise on several fronts. But it needed to be impressive in most regards to justify its $229,530 starting price.

The judges loved its 3.0-litre twin turbo V6 engine which made effortless work of moving this luxury limo along the road, and yet is still capable of using just 7.9L/100km.

"I'm amazed they can get 7.9L from a two-tonne car," admitted one judge.

Not surprisingly the S400L was quiet and refined on the road, its suspension coming in for particular praise. The judges felt it could comfortably handle any bump or blemish in the road without disturbing the occupants.

As for the interior, it split opinion, particularly with the light coloured leather in our test car. Although there was a common appreciation for the quality of the design, the variety of materials didn't win universal praise.

At the other end of the spectrum, both in terms of price and concept, comes the 435i Gran Coupe.

BMW has joined the likes of Mercedes-Benz and Audi by trying to combine the best of both a sedan (space) and coupe (style).

Drive's Best Luxury Car over $80,000 finalists. Photo: Mark Bean

The 4-Series Gran Coupe does an impressive job of this, offering only marginally less rear space than a similar-sized 3-Series sedan but adding the practicality of a liftback boot - as well as a more stylish sloping roofline.

The 435i is powered by BMW's silky smooth 3.0-litre turbocharged inline six-cylinder engine mated to an eight-speed automatic transmission. It is a combination that won praise from all the judges.

As did the way the 435i handled itself during the dynamic testing, proving BMW remains focused on providing a car biased towards sportiness.

Drive's Best Luxury Car over $80,000 finalists. Photo: Mark Bean

But that cost it when the judges tested the Gran Coupe on the road, where its firm ride, tyre roar and wind noise, cost it points against the criteria for a luxury car.

The interior was also criticised for being too plain and conservative for a luxury vehicle.

"It's a nice sporty car, but it's not a luxury car," was how one judge summed up the feelings of many.

Which brings us back to the Tesla. The judges had to put aside its role as an EV pioneer and judge it on its merits against the criteria.

In all the key areas - under the bonnet, on the road, value, etc - it impressed the judges.

The P85+ model we tested features the most powerful motor and largest batteries currently offered by Tesla Australia. The extra performance and range does add $36,400 to the $91,400 base price for a Model S, but it adds worthwhile performance (285kW/600Nm) and still undercuts the likes of the Audi S6 (from $168,900) and BMW 550i (from $159,930) which are its closest market rivals.

Indeed on the performance front the Model S stunned the judges, recording the second fastest 0-100km/h time of all 42 cars on test (4.4seconds) beaten only by the supercharged V8 HSV Maloo GTS.

And while range remains the Achilles' heel of electric cars - with most on the market offering between 150-200km - the P85+ has a claimed range of 502km, making it a practical alternative to an internal combustion engined car the majority of the time.

The Model S also impressed the judges with the rest of its design. Having been designed from the beginning as an electric car Tesla has been able to free up more space for passengers and luggage.

The interior is completely contemporary in style, with a 17-inch touchscreen controlling all of the car's aircon, navigation and entertainment as well as other vehicle settings (lights, charging, etc). But there are other nice touches, like the proximity key and in-seat sensor that does away with the need for a start button - simply get in and the Model S is ready to go.

Unfortunately the seats themselves were not to as impressive, being criticised by the judges for lacking support but also offering average ergonomics for some.

But the Model S won points back for its 924-litres of boot space - split between a 744-litre rear boot and 150-litre front storage space.

The Model S also did the other important elements of a luxury car right - it rode comfortably and steered well.

The powerful regenerative brakes (which can be adjusted) took some acclimatisation but judges were soon happy with the way the Model S stopped, some even managed to drive a long time without even touching the brake pedal.

"Once you get used to it it's amazing," said one judge of the brakes.

When the votes were tallied the Tesla not only made history for being the first electric car in the Drive Car of the Year finals but also the first EV to win its category. And with a unanimous verdict too.

"The fact that it works [is what makes it so impressive]," summed up one judge. "It works in the real world. It's not some motor show concept."

The S400L earned second place ahead of the E300 with the 435i Gran Coupe rounding out the field. But the moment belongs to Tesla - and history.





Judges' votes

Winner: Tesla Model S P85+ 6

Second: Mercedes-Benz S400L 14

Third: Mercedes-Benz E300 Bluetec Hybrid 17

Fourth: BMW 435i Gran Coupe 23

Tesla Model S P85+

Price: From $127,800

Engine: Electric motor

Power: 285kW at 0rpm

Torque: 600Nm at 0rpm

Transmission: Single-speed automatic, rear-wheel-drive

Fuel use: 0L/100km

Capped price servicing: Not yet announced

36-month resale value: Not yet calculated

Mercedes-Benz S400L

Price: From $229,530

Engine: 3.0-litre V6 twin turbo petrol

Power: 245kW at 5250-6000rpm

Torque: 480Nm at 1600-4000rpm

Transmission: 7-speed automatic, front-wheel-drive

Fuel use: 7.9L/100km

Capped price servicing: Optional

36-month resale value: 50 per cent

Mercedes-Benz E300 Bluetec Hybrid

Price: From $109,400, as tested: $122,200

Engine: 2.2-litre four-cylinder turbo diesel/electric motor

Power: 150kW at 4200rpm

Torque: 500Nm at 1600-1800rpm

Transmission: 7-speed automatic, rear-wheel-drive

Fuel use: 4.3L/100km

Capped price servicing: Optional

36-month resale value: 46 per cent

BMW 435i Gran Coupe

Price: From $109,000, as tested: $118,820.

Engine: 3.0-litre six-cylinder turbo petrol

Power: 225kW at 5800-6000rpm

Torque: 400Nm at 1200-5000rpm

Transmission: 8-speed automatic, rear-wheel-drive

Fuel use: 7.6L/100km

Capped price servicing: Optional - $1090 for five years / 80,000km

36-month resale value: 57 per cent.

The Tesla Model S is a watershed moment in luxury car history. The Tesla Model S is a watershed moment in luxury car history. Drive's Best Luxury Car over $80,000 finalists. Photo: Mark Bean