Tesla revealed the updated version of its Model 3 compact sedan in North America on Wednesday, keeping the prices the same despite its popularity in China and Europe.
This move is aimed at giving a facelift to Tesla’s lineup of vehicles in its largest market. This decision follows a price competition last year that allowed the company to achieve its annual delivery targets but impacted profit margins.
The refreshed long-range and rear-wheel drive variants of the Model 3 now feature new elements, such as a rear display for passengers in the backseat, as mentioned on Tesla’s website.
As a result of these updates, the long-range variant can now cover 341 miles on a single charge, an improvement from the previous 333 miles.
Tesla has also introduced fresh wheel designs, available in two new colors, namely “Stealth Grey” and “Ultra Red.”
The rear-wheel drive Model 3 variant is now priced at $38,990, while the long-range variant costs $45,990. Both lost eligibility for the $7,500 federal tax credit at the end of 2023, following new guidance under the US Inflation Reduction Act.
The Model 3 Performance variant, the priciest option at $50,990 before the federal tax credit, has been removed from Tesla’s North American websites.
The upgraded Model 3, developed as part of the “Highland” project, was initially unveiled in China at a higher price in September of the previous year. It became available in Europe a month later.
Analysts believe that the recent record quarterly deliveries from Tesla are a result of these design changes, coupled with discounts and incentives offered by the company at the end of 2023.
However, despite this, Tesla lost its position as the leading electric-vehicle maker by sales to China’s BYD in the fourth quarter. This highlights the competition the American company faces from the Chinese firm, which has been successful in generating demand with more affordable vehicles.
