On January 10, 2024, Tesla officially introduced the restyled version of its Model 3 compact sedan in North America. This follows the successful launch of the upgraded Model 3 in China and Europe, where it garnered demand.
Despite the updates, the company has kept the prices unchanged, providing consumers with improved features without an increase in cost.
The refreshed Model 3, codenamed Highland, has a sleek new front end to improve aerodynamics. The bump on the previous model has been replaced with a more streamlined hood and low-profile headlights.
The exterior is now available in two additional colors, Stealth Grey and Ultra Red, providing customers with more customization options.
One addition is a rear display for backseat passengers, enhancing the overall in-car entertainment experience.
Tesla has also revamped its wheel designs and introduced two new colors to add a touch of freshness to the Model 3’s appearance.
The interior of the upgraded Model 3 features a design with a premium look and feel, incorporating ambient lighting and ventilated seats. The cabin is now quieter than ever, thanks to wrap-around acoustic glass.
Tesla has improved the long-range variant’s range, allowing it to cover 341 miles on a single charge, up from the previous 333 miles.
The rear-wheel-drive variant retains a range of 272 miles. While the acceleration time remains the same, the top speed for both variants has been adjusted, with the 2024 Model 3 now topping out at 125 mph.
The company has removed the Model 3 Performance variant, the highest-priced version of the compact sedan, from its North American websites.
This could be part of a decision to streamline the Model 3 lineup and focus on the rear-wheel-drive and long-range variants.
The upgraded Model 3 arrives in North America following its successful debut in China and Europe. Analysts say that Tesla’s recent record quarterly deliveries to the design changes and various discounts and incentives offered at the end of 2023.
However, the company lost its top spot as the leading electric vehicle maker by sales to China’s BYD in the fourth quarter.
In North America, the rear-wheel-drive variant is priced at $38,990, while the long-range variant is priced at $45,990.
Both variants are no longer eligible for the $7,500 federal tax credit, a change introduced by the U.S. Inflation Reduction Act at the end of 2023.
The pricing strategy is intriguing, especially considering the absence of the tax credit, which could impact consumer preferences.
Some buyers express a preference to wait for the return of the tax credit or a drop in prices before making a purchase decision.
Comparing the Model 3 to the Model Y, which benefits from the tax credit. The Model Y Performance, with the tax credit factored in, could become an alternative for consumers weighing their options.
However, the decision to remove the Model 3 Performance variant might suggest a temporary adjustment to streamline production and focus on configurations.
While the new features and design enhancements are appealing, the absence of the tax credit for the Model 3 could influence consumer demand.
Some buyers may find the Model Y Performance, with its eligibility for the tax credit, a more compelling choice, impacting the sales dynamics between the two models.
Tesla’s leasing option provides an alternative for buyers looking to benefit from the $7,500 federal tax credit.
However, there is a caveat, Tesla’s lease contracts typically do not allow buyers to purchase the leased vehicle at the end of the lease term. This limitation might influence the decision-making process for customers.