Tesla's upgraded Model 3 offers extended range for Chinese market

author: FutureCar Staff    

Tesla has introduced a redesigned 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 is being produced at Tesla's Shanghai plant and 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.

Meanwhile, Tesla has reduced the prices of its premium Model S and Model X by approximately 14% to 21% in China and the United States, its two largest markets. 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 Chinese rivals, including industry leader BYD, earlier this year.

The new Model 3 represents Tesla's first update to its mass-market car lineup since the launch of the Model Y in 2020, which has become the company's top-selling model after the Model 3. However, 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, showcasing its new features that seem tailored to Chinese car buyers. These features include a rear display for back-seat passengers, a better acoustic system, a more comfortable interior, and additional airbags. The exterior of the sedan has also undergone small changes, giving it a sleeker front and new headlights.

One notable improvement in the new Model 3 is its longer driving range. According to China's testing standards, the standard version of the car has a range of 606 km (377 miles), which is approximately 9% higher than the previous base model in China. Tesla has already started taking orders for the new Model 3 and plans to begin deliveries in China in the fourth quarter. Orders are also being accepted 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 in markets outside of China due to less competition in the EV sector, industry experts suggest that it may face stiff competition within China itself. Several new models with similar or even better features and lower prices have already been introduced in China since the Shanghai auto show in April. However, Tesla's revamped Model 3, codenamed "Highland," is aimed at reducing production costs and increasing the model's appeal.

Although Tesla did not provide specific details about the new Model 3's battery, sources indicate that it utilizes 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 aerodynamics to minimize wind resistance. Tesla has not commented on the battery details at this time.

In China, the Model 3 faces competition from other EVs such as BYD's Seal, Geely's Zeekr 001, Nio's ET5, and Xpeng's P7i. Xpeng has recently announced zero-interest loans and free upgrades for its car, adding to the competitive landscape. Tesla also plans to showcase the new Model 3 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.

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 intends to commence deliveries in Europe in late October.

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

FutureCar Staff