Tesla (NASDAQ:TSLA) has introduced the redesigned version of its Model 3 compact sedan in North America, maintaining its pricing despite the improvements. This launch comes after the Model 3 garnered strong demand following its release in China and Europe.
The update aims to rejuvenate Tesla’s vehicle lineup in its largest market and follows a price competition last year that helped the company achieve its annual delivery target but impacted profit margins.
The restyled long-range and rear-wheel drive Model 3 variants now feature enhancements such as a rear display for backseat passengers, as highlighted on Tesla’s website. The long-range variant’s single-charge range has increased to 341 miles from the previous 333 miles.
In addition to technical updates, Tesla has refreshed the wheel designs, introducing two new colors, namely “Stealth Grey” and “Ultra Red.”
Post-updates, the Model 3 rear-wheel drive variant is priced at $38,990, while the long-range variant costs $45,990. Both models no longer qualify for a $7,500 federal tax credit, a change implemented with the U.S. Inflation Reduction Act at the end of 2023.
Tesla has discontinued the Model 3 Performance variant, previously priced at $50,990 before the federal tax credit, from its North American websites.
The upgraded Model 3, developed under the codename “Highland,” was initially revealed in China in September of the previous year at a higher price before hitting the European market a month later.
Analysts attribute Tesla’s recent record quarterly deliveries to these design changes, along with discounts and incentives offered by the company at the end of 2023. However, Tesla lost its position as the top electric vehicle maker by sales to China’s BYD in the fourth quarter, highlighting the competitive challenge posed by the Chinese firm, known for generating demand with more affordable vehicles.
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Author Stephanie Bédard-Châteauneuf 
