Refreshed Model 3 with extended range released by Tesla in China

author: FutureCar Staff    

Tesla has introduced a restyled Model 3 made in China, marking the first time the automaker has launched a new model in China before the United States. The new model, which is being manufactured 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 China and the U.S., its two largest markets. While raising the base price of the Model 3 could protect margins, the price cuts for its higher-end models highlight the ongoing pressure faced by EV manufacturers, particularly in China, where Tesla ignited a price war with Chinese rivals, including industry leader BYD, earlier this year.

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

Tesla plans to unveil the latest Model 3 at a trade fair in Beijing on Saturday, and some of its new features, such as a rear display for back-seat passengers, appear to be tailored to Chinese car buyers. The company stated that the car also boasts an improved acoustic system, a more comfortable interior, and additional airbags. Exterior images reveal subtle changes that give the sedan a sleeker front and new headlights.

The new Model 3 also promises a longer driving range, with the standard version offering a range of 606 km (377 miles) based on China's testing standards. This is approximately 9% higher than the base model it replaces in China. Tesla has already started accepting orders and plans to commence deliveries in China in the fourth quarter. Orders are also being taken in other markets where Tesla exports from Shanghai, 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, Yale Zhang, the managing director at Shanghai-based consultancy Automotive Foresight, believes that the Chinese market already has numerous new models with similar or superior features and lower prices.

Last November, Reuters reported that Tesla was developing a revamped Model 3 under the project codename "Highland." The project aimed to reduce production costs and enhance the model's appeal. Although Tesla did not provide specific details about the new Model 3's battery, an insider revealed that it would use the same lithium-iron-phosphate battery from CATL for 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 overshadowing German automakers like Volkswagen and Mercedes, who are expected to unveil a range of new EVs in response to China's rapidly evolving market.

In China, the new Model 3 starts at 259,900 yuan ($35,807), while in Germany, it starts at 42,990 euros ($46,670). Tesla anticipates delivering the Model 3 in Europe in late October.

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

FutureCar Staff