In a strategic move aimed at solidifying its position as the global leader in electric vehicle (EV) manufacturing, Tesla has revealed its highly anticipated, upgraded Model 3. This new iteration boasts an elegant and sporty design featuring sleeker headlights and an additional 8-inch display screen for rear passengers, as showcased on Tesla’s official website.
However, contrary to the expectations of many analysts, the revamped Model 3 comes with a heftier price tag. Initially launched in China, the refreshed Model 3 starts at approximately $35,800 and above. This price represents a 12% increase compared to the starting price of the previous version, which has now been discontinued in the Chinese market.
Tesla has set its sights on commencing deliveries of the updated Model 3 in the fourth quarter of this year. While consumers in Asia, Europe, the Middle East, and Australia can place orders, the vehicle was not yet available for order in the United States as of early Friday.
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Despite an influx of competitors entering the EV market, Tesla has maintained a relatively measured approach to introducing new products. The company’s most recent passenger vehicle, the Model Y compact sport-utility vehicle, hit the market in early 2020, with the Model S receiving its last upgrade over two years ago.
Investors have long anticipated that the new Model 3 would inject fresh vitality into Tesla’s lineup and stimulate increased demand. Some analysts had anticipated a lower price point to attract a broader customer base.
Following a challenging period of missed delivery targets and a lackluster first quarter, Tesla experienced an 83% surge in global deliveries during the second quarter, setting a sales record. This achievement was facilitated by substantial price reductions and generous discounts. The company, led by billionaire Elon Musk, delivered over 466,000 vehicles worldwide from April to June.
Under the Chinese standard, the standard driving range of the updated Model 3 is 377 miles, while the range stands at 319 miles according to the more widely adopted international standard used in Japan, Europe, and Australia. Tesla also offers a long-range version, which is estimated to provide an impressive 443 miles per charge based on the Chinese standard and is priced at just under $41,000 or higher.
China, as Tesla’s second-largest market, is of paramount importance to the company’s global strategy. In recent years, Tesla has faced increased competition from local rivals such as BYD and encountered challenges to its market share in China. Furthermore, EV sales growth in the country has been decelerating, and an extensive price war among automakers has eroded profitability.
In preparation for mass production of the updated Model 3, Tesla has made adjustments to its production line at its sprawling Shanghai factory, which is the company’s largest worldwide. During a visit to China in the summer, CEO Elon Musk personally inspected the trial-produced Model 3 units at the factory.
In a bid to stimulate sales, Tesla has also recently reduced prices for its imported high-end Model S and Model X vehicles in China, with discounts of approximately 14% and 21%, respectively. These reductions followed a previous price adjustment aimed at making the premium models more accessible to consumers.
