Tesla has introduced an upgraded Model 3 in China and other export markets, including Europe, which is expected to put pressure on competitors. This announcement was made on September 1st, and it brings some notable changes to the popular electric vehicle.
In China, which is not only the world’s largest auto market but also Tesla’s second-largest market after the United States, the refreshed Model 3 is offered at a starting price that’s 12% higher than the previous base rear-wheel-drive model.
Interestingly, Tesla has also made price adjustments for its premium Model S and Model X in both China and the United States, reducing their prices by around 14% to 21%.
The decision to increase the base price of the Model 3, which is one of Tesla’s best-selling models, could help protect profit margins. However, it’s worth noting that this move comes amid continued competition in the electric vehicle (EV) market, particularly in China, where Tesla ignited a price war with local rivals earlier this year.
This updated version of the Model 3 represents the first significant change to Tesla’s mass-market vehicle lineup since the launch of the Model Y in 2020. What’s noteworthy is that Tesla introduced this new model in China before its home market in the United States, highlighting the growing importance of the Chinese market.
Tesla has stated that this new Model 3 will debut at a trade fair in Beijing and will feature enhancements aimed at appealing to Chinese consumers. These include a rear display for back-seat passengers, improved acoustic systems, a more comfortable interior, and additional airbags. The exterior also boasts some subtle changes, giving the sedan a sleeker look with new headlights.
One of the most significant improvements is in the vehicle’s driving range. The standard version of the new Model 3 boasts a rated range of 606 kilometers (377 miles), based on Chinese testing standards, which is approximately 9% higher than the previous base model.
It’s worth mentioning that Tesla has not yet announced a launch date for the new Model 3 in the United States, where they are currently offering discounts on some vehicles in inventory. Tesla manufactures the Model 3 in its Fremont, California plant.
This strategic move by Tesla to unveil the new Model 3 in China aligns with its goal to maintain a strong presence and competitive edge in the global EV market. The company is actively taking orders for this updated Model 3 and plans to start deliveries in China in the fourth quarter. Furthermore, reservations for the new car have been opened in other export markets from Shanghai, including the Middle East, Japan, and Australia.
In China, the starting price for the new Model 3 is set at 259,900 yuan ($35,807). These developments demonstrate Tesla’s commitment to advancing its EV offerings and addressing the evolving demands of various markets, particularly China, where the electric vehicle industry is highly dynamic and competitive.