Tesla introduced the redesigned version of its Model 3 compact sedan in North America on Wednesday, maintaining its prices despite the updates. This move aims to rejuvenate Tesla’s vehicle lineup in its largest market, following a price competition in the previous year that helped the company achieve its annual delivery targets but impacted profit margins.
The updated long-range and rear-wheel-drive variants of the Model 3 now include new features, such as a rear display for backseat passengers, as per information on Tesla’s website. The long-range variant’s single-charge range has been extended to 341 miles from the previous 333 miles. Tesla has also revamped the wheel designs, offering two new colors, “Stealth Grey” and “Ultra Red.”
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Pricing for the Model 3 rear-wheel-drive variant stands at $38,990, while the long-range variant is priced at $45,990. Both models are no longer eligible for the $7,500 federal tax credit, based on new guidance under the US Inflation Reduction Act, which came into effect at the end of 2023.
Notably, Tesla has removed the Model 3 Performance variant, the highest-priced version at $50,990 before the federal tax credit, from its North American websites.
The upgraded Model 3, developed under the codename “Highland,” was initially unveiled in China in September of the previous year at a higher price before becoming available in Europe a month later.
While analysts attribute Tesla’s recent record quarterly deliveries to design changes and end-of-year discounts, the company ceded its position as the leading electric-vehicle maker by sales to China’s BYD in the fourth quarter. This highlights the competitive challenge Tesla faces from BYD, which has been successful in generating demand with more affordable electric vehicles.
