Refreshed Model 3 with extended range released by Tesla in China

author: FutureCar Staff    

Tesla has unveiled a restyled, made-in-China Model 3 with a longer driving range, marking the first time the automaker has launched a new model in China before the United States. The new model, which is being produced at Tesla's Shanghai plant, comes with a starting price that is 12% higher than the previous base model in China. It will also be exported to other markets in Asia, Europe, and the Middle East.

Simultaneously, Tesla has reduced the prices of its premium Model S and Model X by approximately 14% to 21% in both China and the U.S., its two largest markets. While raising the base price of the Model 3 may help protect margins, the price cuts for the higher-end models highlight the ongoing pressure faced by electric vehicle (EV) manufacturers, particularly in China where Tesla ignited a price war with local competitors, including industry leader BYD.

The new Model 3 represents Tesla's first update to its mass-market car lineup since the introduction of its global best-seller, the Model Y, in 2020. Although Tesla has not announced a launch date for the new Model 3 in the U.S., where it currently offers discounts of over $5,000 on some inventory vehicles, the Model 3 is also assembled in Fremont, California.

Tesla plans to debut the latest Model 3 at a trade fair in Beijing, with certain features tailored to appeal to Chinese car buyers. The car boasts a better acoustic system, a more comfortable interior, additional airbags, and small exterior changes that give it a sleeker front and new headlights. Furthermore, the new Model 3 offers a longer driving range, with the standard version achieving 606 km (377 miles) based on China's testing standards, approximately 9% higher than the previous base model.

Tesla has already started accepting orders for the new Model 3 and plans to begin deliveries in China in the fourth quarter. It is also taking orders in other export markets, including Germany, Japan, Malaysia, Australia, and New Zealand. While the new Model 3 is expected to perform well outside of China due to less competition in the EV market, industry experts have noted that the Chinese market has already seen numerous new models with similar or better features and lower prices.

Reuters previously reported that Tesla was developing a revamped Model 3 under the project codename "Highland" to reduce production costs and enhance the model's appeal. Although Tesla did not provide details about the new Model 3's battery, sources indicate that it features the same lithium-iron-phosphate battery from CATL as the base model. The increased driving range is achieved by reducing weight and improving the car's profile to minimize wind resistance.

In China, the Model 3 faces competition from BYD's Seal, Geely's Zeekr 001, Nio's ET5, and Xpeng's P7i. Xpeng recently announced zero-interest loans and free upgrades for its car. Tesla also plans to showcase the new model at the Munich auto show, potentially stealing attention from German automakers like Volkswagen and Mercedes, who are expected to unveil a range of new EVs in response to China's rapidly evolving market.

The new Model 3 has a starting price of 259,900 yuan ($35,807) in China and 42,990 euros ($46,670) in Germany. Deliveries in Europe are scheduled to begin in late October.

($1 = 7.2582 Chinese yuan, $1 = 0.9211 euros)

FutureCar Staff