Tesla
- Tesla gave its Model 3 a major makeover – the first in six years.
- The new version, with sleeker headlights and a new rear display, will cost 12% more in China.
- But the company cut the price of its Full Self-Driving feature in the US by $3,000.
Tesla has released a sleeker version of its Model 3 sedan in the first major revamp of one of its cars.
The automaker unveiled the new-look model on its website Friday. It features slimmer headlights, a new 8-inch display for rear passengers and a longer range of up to 377 miles.
It's the first time Tesla has updated a model for the Chinese market ahead of the US, Reuters reported.
Rumours began to circulate in April that the Model 3 would be getting a makeover when an unverified picture of what appeared to be a redesign was shared on social media. Photos released by Elon Musk's automaker appear to be similar to those from April.
A redesign has long been regarded as crucial to the company's main goal of selling more cars. Analysts feared the Model 3, which has been on the market since 2017, was beginning to look stale as a wave of suppliers waded into the EV market.
Tesla has changed 50% of the parts on the car. Tesla is also releasing two new colors: Ultra Red and Stealth Gray. pic.twitter.com/MK89sGnC9A
— Sawyer Merritt (@SawyerMerritt) September 1, 2023
But Tesla surprised by raising the price of the updated Model 3 in China by 12% to 259,900 yuan, or about $35,800. The car is made at the Shanghai plant and deliveries will start in October.
Analysts at Bloomberg Intelligence wrote: "Tesla's higher-than-expected price for its redesigned China-built Model 3 could ease concerns that BYD, Xpeng, Nio and other rivals might need to cut prices further to sustain their order and sales momentum."
The increase follows a series of price cuts from the world's largest EV in both the US and Asia.
However, Tesla again reduced the price of its more expensive cars in China, with the Model X slashed by 18% to 738,000 yuan ($102,000) and the Model S cut by 14% to 698,900 yuan ($96,200).
In the US, the price of the Full Self-Driving system was reduced by $3,000 to $12,000 hours after Tesla unveiled the updated Model 3. The move reverses a $3,000 increase last year.