Tesla has introduced a refreshed version of its Model 3 compact sedan in North America without altering its prices. This update comes several months after the vehicle experienced strong demand following its launch in China and Europe. The decision to revamp the Model 3 is aimed at rejuvenating Tesla's vehicle lineup in its largest market. The move follows a pricing competition in the previous year, which allowed the company to achieve its annual delivery targets but impacted profit margins.
The restyled Model 3 variants, including long-range and rear-wheel drive options, now feature enhancements such as a rear display for backseat passengers, as detailed on Tesla's website. Notably, the long-range variant's single-charge range has increased to 341 miles from the previous 333 miles. Tesla has also updated wheel designs, offering them in two new colors: "Stealth Grey" and "Ultra Red."
The rear-wheel drive Model 3 is now priced at $38,990, while the long-range variant costs $45,990. These prices come after both models lost eligibility for a $7,500 federal tax credit at the end of 2023, following new guidance under the U.S. Inflation Reduction Act. The Model 3 Performance variant, previously the most expensive version at $50,990 before the federal tax credit, has been removed from Tesla's North American websites.
The upgraded Model 3, developed under the project codenamed "Highland," was initially unveiled in China at a higher price and later released in Europe. Analysts attribute Tesla's recent record quarterly deliveries to these design changes, along with discounts and incentives offered by the company in late 2023. However, despite these efforts, Tesla lost its position as the top electric-vehicle maker by sales to China's BYD in the fourth quarter, highlighting the competition and challenges the American company faces from cheaper alternatives in the market.
Source: https://www.reuters.com/business/autos-transportation/tesla-launches-updated-model-3-north-america-2024-01-10/
